The Consumer Financial Protection Bureau yesterday announced an enforcement action against Student Loan Pro and its owner, Judith Noh, that will see them both permanently banned from offering or providing any consumer financial products or services after they were accused of charging borrowers illegal upfront fees for accessing free debt-relief programs. The action brings to a conclusion a lawsuit that was filed more than three years ago against the company and its owner.
Student Loan Pro and Noh were found to have violated the Telemarketing Sales Rule by charging borrowers upfront fees for services related to student loan debt relief — services that were already available for free through the Department of Education. From 2015 to 2019, the company marketed its debt-relief services to consumers with federal student loans, charging advance fees of up to $795. These fees were collected before any legitimate debt relief was provided, in direct violation of federal rules prohibiting such practices.
The CFPB’s suit alleged that Student Loan Pro’s actions caused approximately 3,300 consumers to collectively pay nearly $3.5 million in illegal advance fees. Student Loan Pro’s services included filing paperwork for loan consolidation and other debt-relief programs that borrowers could access without charge from the federal government.
The CFPB also disclosed that FNZA Marketing, LLC, a related entity owned by Noh, was used to funnel funds obtained through the unlawful practices. The stipulated judgment requires Noh to take steps to dissolve both Student Loan Pro and FNZA Marketing, LLC. Additionally, the CFPB imposed a civil money penalty of $2,000, acknowledging the defendants’ inability to pay more.
If approved by the court, the judgment would ban Noh and Student Loan Pro from participating in any consumer financial product or service in the future. This ban not only includes direct involvement but also prohibits Noh from working in any capacity for a company that offers such services. Noh is also barred from doing business with Syed Gilani, the de facto manager and owner-in-fact of Student Loan Pro, who is still subject to ongoing legal proceedings by the CFPB.
