The Consumer Financial Protection Bureau, in conjunction with two state Attorneys General and the City Attorney of Los Angeles, yesterday announced an enforcement action against a student loan debt relief company accused of charging more than $71 million in unlawful advance fees dating back to 2015.
The complaint was filed in the District Court for the Central District of California against Consumer Advocacy Center Inc., which does business as Premier Student Loan Center, True Count Staffing Inc., also known as SL Account Management, and Prime Consulting LLC, which is known as Financial Preparation Services. As well, Albert Kim, Kaine Wen, and Tuong Nguyen, who are accused of “substantially” assisting the companies, were also named as defendants.
A copy of the complaint can be accessed by clicking here. Joining the CFPB and the City Attorney of Los Angeles is the Attorney General of Minnesota and the North Carolina Department of Justice.
Among the allegations made by the CFPB in its complaint were that the defendants charged and collected improper advance fees before individuals had received any adjustment of their student loan balances. The defendants are also accused of misrepresenting the purpose and application of fees they charged, their ability to obtain loan forgiveness, and their ability to actually lower the individuals’ monthly payments. The defendants are also accused of failing to mention to their customers that they automatically requested the loans be placed in forbearance and submitted false information to the student loan servicers to qualify individuals for lower payments.
