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Home » CFPB Goes After Student Financial Aid Services Over Sales, Billing
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CFPB Goes After Student Financial Aid Services Over Sales, Billing

July 27, 2015
The CFPB has filed a complaint and a proposed $5.2 million consent order in federal court against Sacramento, CA-based Student Financial Aid Services for allegedly illegal sales and billing practices.The company has operated websites and related call centers where it offers fee-based assistance to consumers filling out the federal government’s Free Application for Federal Student Aid. According to the CFPB’s complaint, when consumers entered their payment information for certain financial advisory services, SFAS began to bill them for an annual subscription without their knowledge or consent. These recurring charges typically ranged from $67 to $85 each year and were renewed annually, according to the bureau. The company enrolled consumers in these annual subscriptions without adequate disclosures and imposed recurring ...
News Inside the CFPB Enforcement Regulation Supervision & Examination Non-Mortgage Regulation Student Loans
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