A government watchdog agency is cracking down on student-loan “debt relief” firms, accusing the companies of tricking borrowers into paying upfront fees for free federal loan programs.
In a pair of lawsuits filed on Thursday, the Consumer Financial Protection Bureau is seeking an injunction against one firm, Student Loan Processing.US, and a permanent ban on another, the now-defunct College Education Services. The bureau is also seeking fines and restitution for borrowers.
“Student loans are already a significant debt for many Americans,” Richard Cordray, the financial-protection bureau’s director, said in awritten statement. Those companies “added to that hardship by taking advantage of troubled borrowers and failing to describe their services honestly.”
Read more at The Chronicle of Higher Education: https://chronicle.com/article/Watchdog-Agency-Cracks-Down-on/150813
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