California DFPI requires student loan debt-relief company to pay more than $1 million in penalties, restitution oc-breeze.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from oc-breeze.com Daily Mail and Mail on Sunday newspapers.
The California Department of Financial Protection and Innovation (DFPI) today launched an investigation into whether student-loan debt-relief companies operating in California are engaging in illegal conduct under the new California Consumer Financial Protection Law (CCFPL) and Student Loan Servicing Act (SLSA). The DFPI also issued a formal action against one such company, Optima Advocates, Inc., which took money from struggling student-loan borrowers while falsely claiming the company could get the student-loan debt dismissed.
“Student-loan borrowers seeking help with repayment deserve protection from predatory debt-relief scams,” said DFPI Commissioner Manuel P. Alvarez. “This action holds Optima Advocates accountable for its deceptive practices and will bring relief to those having a hard time repaying their student loans.”
California's Department of Financial Protection and Innovation announced its first formal enforcement action on Wednesday, ordering a company behind an alleged student debt-relief scam to refund customers and pay thousands of dollars in fines.