WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) has announced enforcement actions against Student Loan Pro and its owner, Judith Noh, permanently barring them from offering consumer financial products or services. This move follows allegations that the company illegally charged borrowers upfront fees to file paperwork for debt-relief programs readily available for free through the U.S. Department of Education.
Student Loan Pro, a California-based operation established by Noh in 2015, marketed debt-relief services specifically for federal student loan borrowers. According to the CFPB’s complaint, the company violated the Telemarketing Sales Rule by collecting advance fees of up to $795 for its services, impacting around 3,300 consumers who collectively incurred nearly $3.5 million in unnecessary fees. These violations contradict federal regulations prohibiting soliciting or receiving upfront payments for debt-relief services.
Proposed Stipulated Judgment
If approved by the court, the stipulated judgment would take several significant steps to address these violations:
- Business Ban: Student Loan Pro and Noh would be barred from providing any consumer financial services, including debt-relief services. Additionally, the ruling prohibits Noh from partnering with Student Loan Pro’s former operational manager, Syed Gilani, or allowing him access to company accounts.
- Company Dissolution: The judgment mandates Noh to dissolve both Student Loan Pro and FNZA Marketing, LLC, a related business under her ownership.
- Financial Penalty: Due to the defendants’ inability to cover larger fines, a civil money penalty of $2,000 would be imposed.
The CFPB’s case against Gilani, who the agency alleges was the de facto owner of Student Loan Pro, remains active.
Broad Implications
This enforcement emphasizes the CFPB’s firm stance on protecting consumers from illegal financial practices. “The CFPB’s action halts harmful practices that targeted borrowers seeking debt relief and ensures accountability under existing law,” the agency noted in its announcement.
By permanently removing Student Loan Pro and Noh from the financial services market, the CFPB aims to eliminate risks to consumers while reinforcing compliance with federal laws designed to safeguard public financial interests.
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