Frank Ronald Gebase, Jr.
On June 9, 2022, the Bureau filed a lawsuit in the United States District Court for the Southern District of California against Frank R. Gebase Jr., along with a proposed stipulated final judgment and order, which the court entered that same day. On March 30, 2016, the Bureau ordered Student Aid Institute (SAI) to shut down its debt-relief operations and rescind all of its consumer agreements; that order resolved the Bureau’s findings that SAI violated federal consumer law including by charging upfront fees for student loan debt-relief services and making false promises to consumers about possible savings, loan forgiveness, and reduced payments. The Bureau alleged that Gebase founded, owned, and operated a student loan debt-relief company named Processingstudentloans, which obtained student loan account and billing information for hundreds of former SAI consumers without their knowledge or consent. The Bureau alleged that Processingstudentloans collected fees from consumer bank accounts even though they had never signed any agreements with the company or otherwise consented to the withdrawals. The Bureau alleged that through his actions as Processingstudentloans’ chief executive, Gebase engaged in and substantially assisted in unfair acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA). The stipulated final judgment and order prevents Gebase from directly or indirectly providing debt-relief services, and requires Gebase to pay a civil money penalty of $175,000.
Stipulated Final Judgment and Order
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