March 15, 2016

The CFPB requested a California district court to enter a final judgment and order banning Student Loan Processing.US and its sole owner, James Krause, from any future involvement in debt relief and student loan services.  The proposed order also requires the company to shut down all operations within 45 days of the judgment and to pay $8.2 million in refunds to thousands of harmed consumers – although most of that payment will be suspended due to the defendant’s inability to pay.  The CFPB’s lawsuit alleged that Student Loan Processing.US charged consumers illegal upfront enrollment fees before providing any services, deceived customers about the costs of their services, and falsely represented an affiliation with the DOE. CFPB