NY Watchdog Probing Private Student Debt Relief Fees

Law360, New York (January 22, 2014, 1:29 PM EST) -- New York Gov. Andrew Cuomo's administration said Wednesday that its new student protection watchdog had subpoenaed 13 student debt relief companies as part of an investigation into concerns about potentially misleading advertising, improper fees and other consumer protection problems in that industry.

The governor's Student Protection Unit, housed in the Department of Financial Services, is probing concerns that the industry is charging high, improper fees without adequate notice for enrolling students in debt relief programs that are available for free through the federal government.

“The rising...
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