The Consumer Financial Protection Bureau filed suit Thursday to stop a California company that allegedly sent millions of letters to students and their families offering help in getting financial aid---for a fee.

Through its affiliates Student Financial Resource Center and College Financial Advisory, Global Financial Support charged victims $59 to $78 for assistance in maximizing merit and need-based financial aid.

“In reality, many consumers receive nothing in exchange for their fee and the scheme reaps millions of dollars in illegal fees,” the CFBP said in the legal action.

To create a false sense of trust, the CFPB said Student Financial Resource Center and College Financial Advisory used logos and seals to make the recipients of the letter think the companies were connected with the federal government.

The CFPB also alleged the two firms tell students and families that unless they send their application and pay a fee by a specified deadline, they will lose their opportunity to receive student financial aid.

“In reality their deadlines are meaningless,” said the agency.


The advice the alleged fraudsters pretended to offer to victims is available from the federal government for free. The Department of Education’s Free Application for Federal Student Aid (FAFSA) has aided many students in apply for government assistance.

The suit was filed in the U.S. Federal Court for the Southern District of California.