CFPB Accuses Student Financial Aid Company of Scam

October 30, 2015

The Consumer Financial Protection Bureau on Thursday filed suit against a student financial aid company that it accused of running a nationwide scam.

The CFPB sued Global Financial Support -- which operates Student Financial Resource Center and College Financial Advisory -- for engaging in predatory practices. Officials said the company tricked consumers into paying money for sham financial aid services and falsely indicated that it was affiliated with the government and academic institutions.

Armond Aria, the company's owner, is also named in the lawsuit, which seeks a court order stopping the company's practices as well as unspecified amount of restitution. The company did not immediately return a call for comment Thursday afternoon.

“Student Financial Resource Center and College Financial Advisory scammed thousands of students by masquerading as government agencies and other trusted organizations,” CFPB Director Richard Cordray said in a statement. “Students and families were looking for information on how to pay for college; instead they were illegally charged millions of dollars for sham financial services.”

The CFPB last year took action against two similar companies, and it has warned consumers about other firms that charge consumers to help apply for free benefits associated with their federal student loans, such as income-based repayment.

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