On November 13, 2023, the CFPB announced that 845 former Student Aid Institute (SAI) consumers will receive checks in the mail in response to a lawsuit filed against Frank Ronald Gebase Jr., the founder, owner, and operator of Processingstudentloans, a student loan debt-relief company that illegally withdrew hundreds of thousands of dollars from the bank accounts of former SAI consumers without their authorization. The total distribution amount is $240,994.00, and the money will come from the CFPB’s victims relief fund.
On March 30, 2016, the CFPB shut down Student Aid Institute (SAI)’s debt-relief operations and ordered the company to rescind all of its consumer agreements for violating consumer financial protection law by charging unlawful upfront fees for student loan debt-relief services. In addition, the company was found making false promises to consumers about possible savings through loan forgiveness and reduced payments. The stipulated final judgment and order, among other requirements, required the owner of SAI to pay a civil money penalty of $175,000.
Read the CFPB’s announcement here.