CA DFPI Brings Enforcement Actions Against Student Loan Debt Relief Companies

The California Department of Financial Protection and Innovation (DFPI) recently announced that it has taken action against three student loan debt relief companies for (i) collecting upfront fees from consumers in violation of the Telemarketing Sales Rule, (ii) violating the Impersonation Rule promulgated by the FTC under section 18 of the FTC Act, by falsely representing to consumers that the debt relief company was working under the guidance and directly for the U.S. Department of Education; and (iii) violation of the California Consumer Financial Protection Law by engaging in unlawful, unfair, deceptive or abusive acts or practices with respect to consumer financial products or services. 

The DFPI issued cease and desist orders to these companies, prohibiting them from engaging in such unlawful practices, and also in certain cases, assessed penalties and ordered refunds to affected consumers.