New York Attorney General Letitia James issued a consumer alert (not an enforcement action) warning New Yorkers about scammers exploiting confusion from recent federal changes to student loan repayment programs, including the elimination of the SAVE plan and phase-out of income-driven repayment plans. The alert describes common scam tactics — upfront fees, false guarantees of loan forgiveness, manufactured urgency, demands for powers of attorney, and requests for federal student aid (FSA) credentials — and urges consumers to report scams to the OAG. No company was named, no violation was alleged against a specific entity, and no penalty was imposed.
No remedies imposed, as this is an advisory consumer alert rather than an enforcement action. The alert provides consumer protection tips (avoid paying upfront commissions, distrust unsolicited calls/emails and guaranteed forgiveness offers, refuse artificial urgency, avoid signing powers of attorney, never share FSA ID credentials) and directs consumers to report scams to the NY OAG through its complaint portal at ag.ny.gov/file-complaint/consumer.
This is a consumer alert rather than an enforcement action, but in-house teams at companies operating in (or marketing adjacent to) the student loan and debt relief space should review vendor, marketing affiliate, and lead generator agreements for several risk areas. First, check payment/fee terms for any upfront or advance-fee structures, since charging initial fees for student loan assistance services violates New York law. Second, review marketing and affiliate contracts for claims restrictions — agreements should prohibit guarantees of loan forgiveness or 'debt elimination,' false claims of government affiliation, and pressure-based urgency tactics in promotional materials. Third, examine any data handling or account access clauses: vendors must not request or collect consumers' FSA ID or other federal student aid credentials, and customer agreements should state this expressly. Fourth, scrutinize service agreements for any requirement that consumers execute broad powers of attorney, which the OAG flags as a red flag. Finally, confirm consumer-facing terms and vendor compliance representations reference state consumer protection laws, including New York's advance-fee ban, and include cooperation provisions for AG complaint inquiries.
Entity
N/A (no company named - general consumer alert about unidentified scammers)
Industry
Other"La Fiscal General James Advierte a los Neoyorquinos Sobre Estafas Relacionadas con Préstamos Estudiantiles"
"September 2, 2026"
"La Fiscal General de Nueva York, Letitia James, emitió hoy una alerta al consumidor"
"emitió hoy una alerta al consumidor para advertir a los neoyorquinos sobre estafadores"
"Los estafadores están aprovechando estas modificaciones recientes en los programas de préstamos para idear nuevas estafas dirigidas a los prestatarios."
"La Fiscal General James ofrece consejos para que los prestatarios protejan sus finanzas"
$2.6M
New York and Connecticut reached a settlement with Boston Children’s Health Physicians and its IT security provider, XTIUM, after a 2024 breach exposed private information of approximately 825,000 New York residents and 62,871 Connecticut residents. The companies will pay $2.64 million and implement enhanced cybersecurity measures; additional penalties are conditional on violating the settlement.
New York Attorney General Letitia James joined 16 other attorneys general in urging Congress to pass proposed legislation addressing the federal government’s release of Jeffrey Epstein-related records. The press release says DOJ has not fully disclosed the records required by the original law and that personal information of at least 43 victims was exposed in released files; this is a legislative advocacy announcement, not an enforcement action imposing a penalty or remedy.
$1.9M
New York Attorney General Letitia James secured a settlement after an investigation found Dollar General stores routinely charged customers more than advertised or posted prices and issued confusing receipts. Dollar General must donate $1.875 million in food and personal items to Foodlink and implement pricing, receipt, training, and audit reforms.
New York Attorney General Letitia James released an updated guide warning voters that AI-generated election content and chatbots may provide misleading information. This is public guidance, not an enforcement action, and the release describes no penalty or privacy violation.
New York Attorney General Letitia James and a bipartisan coalition of 39 other attorneys general filed a motion in Character Technologies, Inc.’s bankruptcy, citing risks to children and sensitive user information and potential violations of state privacy laws. The coalition asks the court, the company, and any prospective buyer to require meaningful privacy and safety protections; no fine or final remedy is reported.
New York Attorney General Letitia James, the FTC, and six other state attorneys general asked a federal court to hold Martin Shkreli in contempt for allegedly trading pharmaceutical stocks and discussing pharmaceutical companies in violation of his lifetime industry ban. The requested sanctions include divestiture, an accounting of his trading, forfeiture of trading profits, and possible further fines or incarceration; the release describes a request to the court, not a new ruling imposing those measures.