On December 4, 2024, the CFPB took action to permanently ban Student Loan Pro and Judith Noh, its owner, from offering or providing consumer financial products. The CFPB alleges that the company and its owner violated federal law by charging borrowers upfront fees to file paperwork on their behalf to access free debt-relief programs available to consumers with federal student loans.
Student Loan Pro telemarketed debt-relief services for consumers with federal student loan debt. In 2021, the CFPB filed a lawsuit alleging that Student Loan Pro, Noh, and Syed Gilani, the company’s manager and owner-in-fact, violated the Telemarketing Sales Rule by requesting and receiving advance fees for its debt-relief services. The company’s services included filing paperwork on consumers’ behalf to apply for programs that were already available to borrowers for free from the United States Department of Education.
The Telemarketing Sales Rule prohibits sellers and telemarketers from asking for advance fees for debt relief services until they negotiate or change the terms of at least one debt and the consumer has made one payment on it. According to the CFPB, Student Loan Pro's violations led to about 3,300 consumers losing nearly $3.5 million in advance fees.
The CFPB’s stipulated judgment, if entered by the court, would:
Ban Student Loan Pro and Noh from providing consumer financial products;
Dissolve the company, including FNZA Marketing, LLC, which is also owned by Noh; and
Pay a civil money penalty of $2,000 because of the defendants’ demonstrated inability to pay more.
Read the CFPB’s press release here.
The complaint can be found here.
The Proposed Order can be found here.