Consumer Financial Protection Bureau (CFPB) v. Aria

A covered person under the CFPA is any person that engages in offering or providing a consumer financial product or service.

Petitioner mailed millions of solicitations offering enrollment of students in a financial aid program in exchange for a $59-$78 “processing fee.” After accepting the offer students had only received a booklet on various financial topics. The Consumer Financial Protection Bureau ("CFPB") took a civil enforcement action against petitioner and the District Court granted summary judgment to the CFPB. Petitioner appealed the decision arguing he did not provide "financial advisory services" as defined under the Consumer Financial Protection Act ("CFPA"). A covered person under the CFPA is any person that engages in offering or providing a consumer financial product or service. There are ten listed categories of consumer financial products or services. The Court reasoned that Petitioner did provide financial advisory services because under ordinary definitions, “financial” means “related to finance” and scholarships are financial in nature because they deal with the furnishing of necessary funds. Additionally, Petitioner offered advice through the booklet that was provided to the students that applied which was also financial in nature. Petitioner also argued that he did not engaged in deceptive solicitation, however the grant of summary judgement was affirmed upon the finding that Petitioner did not apply for financial aid programs on student’s behalf. AFFIRMED.