Charged with running deceitful advertisements about the money-saving potential of its services, online student loan refinancer Social Finance, Inc. agreed to stop making such misrepresentations in a settlement with the Federal Trade Commission (FTC).
Given that the FTC does not have the authority to force companies to pay a civil money penalty, one commissioner suggested that the agency could achieve “better results” by partnering with regulatory bodies who have such authority – something it has done on multiple occasions.
Find out more details about the charges and what the agency is encouraging other lenders to do to avoid similar actions.