On March 13, the CFPB filed a brief in an Illinois federal court, reinforcing its arguments for a $43 million judgment against the founder of a now-defunct debt relief company. The CFPB contends that the company’s founder controlled its deceptive telemarking operations and should be held personally liable under the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA).
The lawsuit, originally filed in 2020, alleges that the company engaged in unlawful advance fees and deceptive practices targeting student-loan borrowers. According to the CFPB, the company:
- Misrepresented its services. The company allegedly promised lower student loan payments, full debt forgiveness, and improved credit scores, but…
