Illinois regulator fines two companies for allegedly providing unlicensed student loan debt relief services
On September 17, the Illinois Department of Financial and Professional Regulation (IDFPR) announced enforcement actions against two companies for allegedly providing unlicensed student loan debt relief services in violation of the Debt Settlement Consumer Protection Act (DSCPA), which generally requires debt settlement services in Illinois to be licensed with the IDFPR. The first action, a consent order, prohibited the debt relief company from engaging in student loan debt relief services in Illinois, and required it to pay $47,929 to affected Illinois consumers as well as a $50,000 penalty. Separately, in the second action, the IDFPR issued a cease and desist order, order of restitution, and order of fine against a second debt relief company. The company is required to discontinue all unlicensed activity, provide full restitution to Illinois consumers totaling $79,585, and pay a $318,000 fine.