May 20, 2024

Hudson Cook Enforcement Alert: CFPB Issues Order Against Student Loan Debt Relief Telemarketer

Lucy E. Morris and Kristen Yarows


  • The Consumer Financial Protection Bureau ("CFPB") issued a consent order with a telemarketing company ("Company") that offers student loan debt relief services for alleged violations of the Telemarketing Sales Rule and the Consumer Financial Protection Act.
  • The Company neither admitted nor denied the allegations, but consented to permanently cease operations, pay a $400,000 penalty to the CFPB's victims relief fund, and rescind all existing agreements with customers.


On May 20, 2024, the CFPB announced a settlement with a telemarketing company that offers student loan debt relief services to resolve allegations that it violated the Telemarketing Sales Rule ("TSR") and the Consumer Financial Protection Act ("CFPA"). The CFPB alleged that the Company violated the TSR and CFPA by engaging in deceptive acts and practices and engaging in deceptive telemarketing practices. The CFPB alleged that the Company misrepresented that it was affiliated with the U.S. Department of Education; that fees paid to the Company would go towards the customer's student loan balance; and that the Company would help customers consolidate their loans, reduce their monthly payments, or achieve loan forgiveness. The CFPB alleged that customers who enrolled in the Company's debt relief services were charged fees from $99.95 to $159.95, as well as monthly fees, regardless of whether the Company was able to receive results on the customer's behalf. The CFPB alleged that these were advance fees in violation of the TSR.

The consent order requires the Company to permanently cease operations, void all consumer agreements, and pay a $400,000 penalty to the CFPB's victims relief fund. The Company did not admit or deny the allegations in the consent order.


You can review all of the relevant court filings and press releases at the CFPB's Enforcement Page.

Enforcement Alerts by Hudson Cook, LLP, written by the attorneys in the firm's Government Investigations, Examinations and Enforcement and Litigation practice groups, are provided to keep you informed of federal and state government enforcement actions and related actions that may affect your business. Please contact our attorneys if you have any questions regarding this Alert. You may also view articles, register for an upcoming CFPB Bites monthly webinar or request a past webinar recording on our website.

Hudson Cook, LLP provides articles, webinars and other content on its website from time to time provided both by attorneys with Hudson Cook, LLP, and by other outside authors, for information purposes only. Hudson Cook, LLP does not warrant the accuracy or completeness of the content, and has no duty to correct or update information contained on its website. The views and opinions contained in the content provided on the Hudson Cook, LLP website do not constitute the views and opinion of the firm. Such content does not constitute legal advice from such authors or from Hudson Cook, LLP. For legal advice on a matter, one should seek the advice of counsel.