Consumer Finance Insights
October 30, 2015

CFPB Sues Student Financial Aid Services Provider


​On October 29, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint seeking a permanent injunction and other relief against a student financial aid services provider for the provider’s alleged violation of the Consumer Financial Protection Act.  The complaint alleges that the provider charged 76,000 college students and prospective college students $59 to $78 to participate in a student financial aid program that would individually match students with financial aid programs.  The complaint alleges that the providers did not provide the services represented in their letters to consumers, failed to refund the entire processing fee as promised when a student did not qualify for financial aid, and gave the appearance in letters to consumers that the providers were affiliated with the United States government.  The complaint seeks a permanent injunction, consumer relief, enforcement costs, and civil money penalties.

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