Western Benefits Group, LLC
On May 20, 2024, the Bureau issued an order against Western Benefits Group, LLC, a telemarketer and seller of student-loan debt-relief services, headquartered in Pleasanton, California. The Bureau found that Western Benefits Group violated the Telemarketing Sales Rule (TSR) by charging advance fees for student-loan debt-relief services. The Bureau also found that Western Benefits Group violated the Consumer Financial Protection Act of 2010 (CFPA) and the TSR by using deceptive acts or practices in the marketing and sale of its services. Specifically, the Bureau found that Western Benefits Group misrepresented that it was endorsed, sponsored, or affiliated with the Department of Education; that fees paid by consumers would be applied towards paying off their student loans; and that its services would help consumers consolidate their student loans, would help lower consumers’ monthly student-loan payments, or would help consumers achieve loan forgiveness. The Bureau found that since 2016, Western Benefits Group’s practices caused approximately 5,970 consumers a total of approximately $974,590 in harm, reflecting the total fees they paid, less any refunds. The Bureau’s order requires Western Benefits Group to permanently cease all operations, voids agreements with consumers relating to student-loan debt-relief, and prohibits assessing or collecting fees under those agreements. The Bureau’s order also requires Western Benefits Group to pay a civil money penalty of $400,000 to the Bureau.
Related documents
Press release
CFPB Takes Action Against Western Benefits for Swindling Student Loan Borrowers