LOS ANGELES - A student loan debt relief service is accused by a federal agency of violating the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Telemarketing Sales Rule and the Consumer Financial Protection Act of 2010, according to a March 16 lawsuit filed in federal court.
Student Loan Pro was in operation from 2015 to 2019, when it helped students submit applications for loan consolidation, income-driven repayment plans, forgiveness plans and other student loan relief strategies.
Plaintiff Consumer Financial Protection Bureau says that defendants Judith Noh, the sole proprietor of Student Loan Pro, Student Loan Pro manager Syed Faisal Gilani and FNZA Marketing LLC have charged more than $3.5 million in unlawful advance fees to its customers, including an initial fee of more than $600 to "prepare applications for the U.S. Department of Education," despite the DE not charging any fees for student loan debt applications, the suit claims.
The fees were concealed over three bank accounts and used for purchases at clothing retailers, nightclubs and casinos, the suit says.
The CFPB asks the court to order the defendants pay monetary relief for their abusive telemarketing practices, plus other civil fines and fees.
The plaintiff is presented by its own counsel based out of Washington, D.C.