CFPB acts against student financial aid scam

The Consumer Financial Protection Bureau has filed a complaint seeking to halt a nationwide student financial aid scam that allegedly ripped off tens of thousands of students and families across the country by illegally charging millions of dollars in fees for sham financial services. The complaint names as defendants Student Financial Resource Center and College Financial Advisory, as well as the individual who owns and operates the scheme. The CFPB is seeking to halt illegal practices and obtain relief for harmed consumers.

The CFPB's complaint alleges violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition against deceptive acts and practices by misleading consumers about their services. The complaint also alleges that the defendants violated federal privacy law for failing to provide a required privacy notice.

Details are provided in the CFPB's press release. The complaint is here.

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