CFPB to distribute more than $10.9 million to consumers harmed by student loan debt-relief business
- English
- Español
This month, 8,571 consumers who were harmed by Performance SLC, a student loan debt relief business, and Performance Settlement, a general debt settlement company, 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. From 2018 through 2022, Performance Settlement used deceptive tactics, in violation of the Consumer Financial Protection Act, to convince consumers referred by OneLoanPlace.com to sign up for its services.
Payments will be sent on February 15, 2024, through RUST Consulting. If you have questions about receiving a refund, email performance_info@rustcfpbconsumerprotection.org or call 1 (888) 396-6086. Learn 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 and Performance Settlement
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. PSLC and Crenshaw charged thousands of consumers with federal student loans approximately $9.2 million in illegal upfront fees. 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). The CFPB also alleged that PSLC failed to provide required disclosures and PSettlement failed to have consumers execute settlement agreements in violation of the Telemarketing Sales Rule. In 2022, the district court entered an order that imposed civil penalties on Crenshaw and the companies and required that redress be paid to harmed consumers. The order 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.