Blog Enforcement Watch May 05, 2016

Kentucky Attorney General Files Suit to Obtain Documents From Student Loan Company

On May 4, 2016, the Kentucky Attorney General announced that it filed a lawsuit against an out-of-state student loan company on May 2, 2016 for failing to turn over key documents in response to a subpoena in an ongoing investigation.  The lawsuit alleges that, under the Kentucky Consumer Protection Act, Kentucky has the power to investigate potentially “unfair, false, misleading, or deceptive practice[s]” and that the student loan company “failed to submit Civil Investigative Demand responses to the Attorney General.”  The complaint further alleges that the Attorney General “has reason to believe that Defendants operate as unregistered debt adjusters in Kentucky.”  The Attorney General seeks (1) an order compelling the student loan company to “fully respond to the subpoena and Investigative Demand as issued”; (2) an injunction prohibiting the company from “engaging in the advertisement or sale” of its products to Kentucky consumers; (3) that the student loan company’s license to do business in Kentucky be revoked; and (4) attorneys’ fees and costs.