An Enfield man reached out to NBC Connecticut Responds about what he thought was a fraudulent check.
Enclosed with the check for $69.99 was a letter addressed to Vincent Klezos. It was from the Consumer Financial Protection Bureau (CFPB) and explained Klezos was receiving the check as reimbursement for annual fees paid to a company called Student Financial Aid Services, Inc.
Klezos never took out student loans. Thinking it was a scam, he reported it NBC Connecticut Responds.
Our consumer team contacted the Consumer Financial Protection Bureau, which confirmed the payment is legitimate. It stems from a 2015 settlement; the CFPB started distributing checks at the beginning of February.
“The payments to consumers from this enforcement action don’t actually relate to student loans; there were recurring fees charged by SFAS for FAFSA preparation services. Many consumers visited the website FAFSA.com and were subsequently charged a recurring fee each year without their knowledge or consent," CFPB spokeswoman, Sam Gilford said.
Those fees ranged from $67 to $85 and were renewed annually.
Student Financial Aid Services, Inc. agreed to pay $5.2 million in restitution. The company also ceased operations and turned over FAFSA.com to the U.S. Department of Education.
