A company accused by U.S. regulators of preying on student loan borrowers with a “debt relief scheme” will likely close up shop very soon.
A federal judge has approved a final judgment order that would require Student Loan Processing.US to shut down within 45 days and reimburse student loan borrowers who were clients.
The U.S. Consumer Financial Protection Bureau (CFPB) said it requested a final judgment and order that would shut down the company that has charged borrowers millions of dollars in illegal upfront fees for federal student loan services.
If approved by the court, the proposed judgment would ban Student Loan Processing.US, and its sole owner James Krause, from any future involvement in debt relief and student loan services. The order would also require the company to pay refunds to thousands of harmed consumers and a civil money penalty.
“Student Loan Processing.US and its owner, James Krause, preyed upon students looking for loan repayment help and fleeced them out of millions,” said CFPB Director Richard Cordray. “The Bureau is taking action to shut down the unlawful operation permanently and to prevent the company and its owner from participating in the student lending and debt relief industries ever again.”
Student Loan Processing.US is headquartered in Laguna Nigel, Calif., with an office in Dallas, Texas. The company also operates under the name IrvineWebWorks, Inc. and runs websites at StudentLoanProcessing.us, StudentLoanProcessing.org, and slpus.org. The student debt relief company has been in operation since at least May 2011 and its customers are located throughout the United States. James Krause is the company’s founder, president, and sole owner.
In December 2014, the CFPB filed a lawsuit against Student Loan Processing.US and Krause in federal district court in California alleging that the defendants charged consumers illegal upfront enrollment fees before providing any services, deceived customers about the costs of their services, and falsely represented an affiliation with the Department of Education.
Here’s a copy provided by the CFPB of the proposed final judgment and order.