CFPB Halts Education Loan Debt Settlement Ripoff. Scholar Aid Institute Illegally Tricked Borrowers Towards Paying Fees for Federal Loan Benefits
The customer Financial Protection Bureau (CFPB) took action to halt a student loan debt relief scam that illegally tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers that it was affiliated with the Department of Education today. The CFPB is purchasing the pupil debt settlement business, scholar help Institute, Inc., as well as its ceo, Steven Lamont, to pay for a penalty, stop debt settlement solutions, and stop asking affected clients. The CFPB can be forever barring the ongoing business and Lamont through the debt settlement industry.
вЂњWe see more organizations and web sites demanding large fees that are upfront assist education loan borrowers sign up for income-driven plans that are offered 100% free,вЂќ stated CFPB Director Richard Cordray. вЂњThese methods bear a troubling resemblance to the mortgage crisis where troubled customers were preyed upon with false claims of relief. We shall continue steadily to power down unlawful scams and address sloppy servicing methods that victimize customers.вЂќ