On May 1, the U.S. District Court for the Northern District of Illinois ordered the former owner of a now-defunct debt-relief company to pay over $43 million in restitution and penalties. The order resolves a lawsuit filed by the CFPB in 2020 alleging violations of the Consumer Financial Protection Act (CFPA) and the Telemarketing Sales Rule (TSR).
The CFPB alleged that the company engaged in deceptive conduct and unlawful billing practices in violation of both statutes. Specifically, the Bureau alleged that the company:
- Charged illegal advance fees. The company collected fees from consumers before performing any debt-relief services, in violation of the TSR.
- Deceived student loan borrowers. The company misrepresented its…
