IDFPR Takes Action Against Unlicensed Student Loan Debt Relief Companies, Orders Consumer Restitution

IDFPR Takes Action Against Unlicensed Student Loan Debt Relief Companies, Orders Consumer Restitution

Department reminds consumers to be aware of predatory student loan relief practices

CHICAGO - As Illinois borrowers prepare for a new school year and as student loan payments and tuition bills come due, the Illinois Department of Financial and Professional Regulation (IDFPR) is taking action to protect consumers and remind the public to be cautious of companies that offer to consolidate, pay off or reduce student loans, or enroll borrowers in lower-cost repayment plans.

IDFPR has taken enforcement action against two companies allegedly providing unlicensed student loan debt relief services in Illinois in violation of the Debt Settlement Consumer Protection Act (DSCPA). On August 31, 2026, IDFPR entered a consent order with Consulting Cafe, LLC DBA Smartfile Services, under which the company is prohibited from engaging in student loan debt relief services in Illinois and is required to provide full restitution of $47,929.44 to affected Illinois consumers. The company is also required to pay a $50,000 penalty to IDFPR.

On September 10, 2026, IDFPR issued a Cease and Desist Order, Order of Restitution, and Order of Fine against Capital Core Advisors, LLC for unlicensed conduct and other violations of the DSCPA. Enforcement of that Order will be stayed if a hearing is requested within 10 days of service. Upon that Order becoming a final administrative order, Capital Core Advisors will be required to cease and desist unlicensed activity, provide full restitution to Illinois consumers of $79,585.59, and pay a fine to the Department of $318,000.

"Student loan borrowers should be able to seek assistance without being subjected to predatory or deceptive practices," said Mario Treto, Jr, Secretary of IDFPR. "These enforcement actions demonstrate IDFPR's commitment to protecting Illinois consumers against predatory entities that operate outside the law. We encourage borrowers to verify that any company offering student loan debt relief services is properly licensed before providing personal or financial information."