Goes on Crackdown toward Illegal Education loan Loans-Recovery Issues
Sacramento, ca – New Ca Agencies away from Monetary Coverage and you may Creativity (DFPI) now announced it’s demanding a great Tustin-centered student loan financial obligation-rescue company, Amerifed Doc Prep LLC, to invest penalties and you can refunds totaling over $1.37 billion after locating the team broken the fresh California User Financial Cover Legislation (CCFPL) by meeting illegal progress charge prohibited underneath the government Telemarketing Conversion Laws.
California DFPI Means Education loan Obligations-Recovery Organization to spend More than $1 million in Punishment, Restitution
The announcement observe a bigger crackdown you to first started for the March up against student loan obligations-save enterprises skirting the CCFPL additionally the Student loan Servicing Operate.
“The DFPI was committed to securing education loan consumers away from predatory debt-relief cons,” told you Acting Commissioner Christopher S. Shultz. “New Agency doesn’t put up with education loan obligations-relief companies that charge California people fees you to break what the law states or bilk and misguide customers. Consumers which have challenges paying down figuratively speaking is to call the fresh You.S. Company from Knowledge or the loan servicer individually.”
Into the a consent order, the new DFPI called for Amerifed to reimburse Ca education loan borrowers a lot more than simply $870,one hundred thousand it had collected into the costs and you will shell out a beneficial $five-hundred,000 punishment toward Department.