A new lawsuit filed by the CFPB in a California federal district court alleges that the defendants, a company and its individual owner, are engaged in a nationwide student financial aid scam.  In addition to injunctive relief, the complaint seeks redress for harmed consumers and civil money penalties.

According to the CFPB’s complaint, the

Last week, the CFPB released to the public a memo it had sent to consumers and industry members who participated in its “Know Before You Owe” student loan project reporting on the feedback it received. The project, described as the product of the CFPB’s partnership with the Department of Education (“DOE”), solicited comments on a