Bureau Asks Court to Shut Down Student Debt Relief Operation
March 21, 2016
Last week, the CFPB asked the U.S. District Court for the Central District of California Southern Division to enter a final judgment and order that would shut down Student Loan Processing.US, and crack down on its sole owner, James Krause, for allegedly charging borrowers millions of dollars in illegal upfront fees for federal student loan services. The order would also require the company to pay refunds to thousands of consumers the bureau says were harmed, as well as a civil money penalty. In December 2014, the CFPB sued the company and Krause, alleging they illegally marketed and sold services promising to advise and assist borrowers applying for Department of Education student loan repayment programs. According to the bureau’s complaint, the ...