New York Launches Student Protection Unit, Investigation Of Debt Relief Companies

Posted on January 26th, 2014 in Consumer Finance, State Issues By BuckleySandler

On January 22, New York Governor Andrew Cuomo launched a new Student Protection Unit within the New York Department of Financial Services dedicated to investigating potential consumer protection violations in the student loan industry. Its first public investigation is focused on companies the unit believes are charging “high, improper fees without adequate notice for enrolling students in debt relief programs that are available for free through the federal government.” The Student Protection Unit issued subpoenas to 13 debt relief companies seeking advertising materials, contracts, consumer disclosures, and fee schedules among other materials.

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