CFPB Files Complaint Against California Debt Relief Company

  • Written by Steel Rose

The Consumer Financial Protection Bureau has filed a complaint against Performance SLC, LLC (PSLC), a California debt-relief business focused on federal student loan debt; Performance Settlement, LLC (PSettlement), a California debt-settlement company; and Daniel Crenshaw, the owner and CEO of the two companies.

 The Bureau alleges that PSLC and Crenshaw charged illegal advance fees in violation of the Telemarketing Sales Rule (TSR) to student loan borrowers seeking to obtain loan consolidation, loan forgiveness, or income-driven repayment plans for their federal student loans, and that PSLC failed to make required disclosures to certain consumers in violation of the TSR. The Bureau also alleges that PSettlement and Crenshaw used deceptive tactics in violation of the Consumer Financial Protection Act (CFPA) in order to induce consumers to sign up for PSettlement’s services.
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The Bureau’s complaint, which was filed in federal district court for the Central District of California, alleges that from 2015 through the present, PSLC charged consumers illegal upfront fees by using telemarketing campaigns to convince thousands of consumers to sign up for services to assist them in obtaining loan consolidation, loan forgiveness, or income-driven repayment plans from the U.S. Department of Education (ED).

Consumers would pay between $1,000 and $1,450 in fees to PSLC for it to file paperwork with ED, even though student loan borrowers can do this themselves for free.To read more click here