State AGs And FTC Combine Forces For Consumer Protection

A dozen bipartisan State Attorneys General and the Federal Trade Commission (FTC) recently instigated a medieval siege dubbed "Operation Game of Loans" against alleged student loan relief scams. This coordinated nationwide enforcement effort targets companies charging upfront fees to consumers for promises of relief from student loan debt – currently estimated to involve $95 million in claimed illegal fees. While this enforcement action is focused on apparent student loan debt relief scammers, there are some broader takeaways for companies about State AG authority.

State Attorneys General conduct multi-state actions that can have a broad national effect equal to that of a federal agency. Here, states ranging from Florida to Illinois, Kansas, Pennsylvania, Texas, Washington, and the District of Columbia show a diversity of political and geographical interests for consumer protection.