SACRAMENTO вЂ“ The Ca Department of Financial Protection and Innovation (DFPI) today established a study into whether student-loan debt-relief companies running in California are participating in unlawful conduct underneath the California that is new Consumer Protection Law (CCFPL) and scholar Loan Servicing Act (SLSA). The DFPI today additionally given a formal action against one particular business, Optima Advocates, Inc., which took funds from struggling student-loan borrowers while falsely claiming the organization might get the student-loan financial obligation dismissed.
вЂњStudent-loan borrowers looking for assistance with repayment deserve security from predatory debt-relief scams,вЂќ said DFPI Commissioner Manuel P. Alvarez. вЂњThis action holds Optima Advocates responsible for its misleading techniques and certainly will bring relief to those having a time that is hard their loansolution.com/title-loans-tn student loans.вЂќ
Into the action against Irvine-based Optima Advocates, the DFPI discovers that Optima Advocates involved in illegal and misleading functions and techniques and sales the organization to cover charges and refunds to consumers. The DFPI further sales the debt-relief business to get rid of doing unlicensed student-loan servicing.
Optima Advocates offered fraudulent guarantees to customers themвЂњdismissedвЂќ or вЂњdischargedвЂќ in exchange for exorbitant fees ranging from $2,100 to $26,510 that it could вЂњwipe awayвЂќ their student loans by getting. Numerous customers financed the re re re payment associated with the charges, dealing with much more debt. The business, but, could perhaps perhaps perhaps not and would not attain the guaranteed results. By simply making misleading claims about its solutions, Optima Advocates violated the CCFPL, which forbids illegal, unjust, misleading, or conduct that is abusive monetary companies.