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CFPB to distribute more than $10.9 million to consumers harmed by student loan debt-relief business

February 15, 2024 / Source: CFPB

This month, 8,571 consumers who were charged illegal fees and misled by Performance SLC for their federal student loan debt-relief services will receive checks in the mail. From 2015 to 2022, Performance SLC charged thousands of consumers with federal student loans approximately $9.2 million in illegal upfront fees, violating the Telemarketing Sales Rule, to file paperwork on their behalf to apply for programs that were available to them for free from the United States Department of Education. Performance SLC also failed to provide required disclosures and used deceptive tactics to convince consumers to sign up for their services.

Payments will be sent on February 15, 2024, through RUST Consulting. If you have questions about receiving a refund, email [email protected] or call 1 (888) 396-6086Learn more about the distribution.

The total distribution amount is $10,936,618 and the money will come from the CFPB’s victims relief fund and CFPB-administered redress.

Action against Performance SLC

On November 5, 2020, the CFPB filed a complaint in the federal district court for the Central District of California 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. Crenshaw and PSettlement used deceptive sales tactics to sign consumers up for PSettlement’s debt-relief services, in violation of the Consumer Financial Protection Act of 2010 (CFPA); and Crenshaw substantially assisted PSLC in requesting or receiving fees illegally and PSettlement in engaging in deceptive acts and practices. In 2022, the CFPB filed an order that permanently bans PSLC from debt-relief services; bans Crenshaw from debt-relief services for five years; and permanently enjoins PSettlement from obtaining referrals from companies purporting to make or arrange loans.

Learn more about the case