The CFPB halted the activities of the “shady” Student Aid Institute, a “student debt relief” firm alleged to have “illegally tricked borrowers into paying fees for federal benefits.” The bureau alleged the firm “reaped millions of dollars in advance fees from thousands of customers for its services” by charging borrowers “hundreds of dollars upfront — as much as $495 — in violation of federal law.” The company’s chief executive also agreed to pay a $50,000 fine, though neither party admitted wrongdoing.

• In March 2016, the CFPB “acted to halt the activities” of the Student Aid Institute, alleging that they “illegally tricked borrowers into paying fees for federal benefits.” [Ann Carrns, “Fraudulent Student Debt Relief Firm Shut Down by Consumer Bureau”, The New York Times, 04/01/16]

• “The bureau said Student Aid Institute reaped millions of dollars in advance fees from thousands of customers for its services.” [Ann Carrns, “Fraudulent Student Debt Relief Firm Shut Down by Consumer Bureau”, The New York Times, 04/01/16]

• “In an administrative consent order, the bureau directed the company to stop its debt relief operations and cancel all contracts with its customers. The company’s chief executive, Steven Lamont, must also pay a $50,000 fine. The order states that the company consented to the settlement ‘without admitting or denying’ its findings.” [Ann Carrns, “Fraudulent Student Debt Relief Firm Shut Down by Consumer Bureau”, The New York Times, 04/01/16]

• “The bureau said Student Aid Institute reaped millions of dollars in advance fees from thousands of customers for its services. The company charged borrowers hundreds of dollars upfront — as much as $495 — in violation of federal law, which requires that at least one debt must be renegotiated or reduced before a fee can be collected for debt relief services, the bureau said. The company also charged maintenance fees of $39 a month.” [Ann Carrns, “Fraudulent Student Debt Relief Firm Shut Down by Consumer Bureau”, The New York Times, 04/01/16]