New York Attorney General Letitia James issued a consumer alert warning borrowers about scammers exploiting recent federal changes to student loan repayment programs, including the elimination of the SAVE plan and phase-out of income-based plans. The alert provides tips for borrowers, including refusing upfront fees, never granting powers of attorney to unknown parties, and never sharing Federal Student Aid login credentials. No specific company was named and no penalties or remedies were imposed; this is an advisory alert, not an enforcement action.
None - this is a consumer alert rather than an enforcement action. No penalties, injunctions, or corrective requirements were imposed. The AG encouraged consumers to follow protective tips and to report student loan scams to the Office of the Attorney General.
This is a consumer fraud alert rather than a privacy enforcement action, so its contract implications are limited but relevant for any company offering student loan assistance, debt relief, or financial services to New York consumers. In-house teams at such companies should review customer agreements and marketing materials for: (1) any upfront fee or advance-fee structures, since the alert states it is a violation of New York law to charge upfront fees for student-loan-related services; (2) any clauses requiring consumers to execute powers of attorney, which the AG identifies as a scam red flag; (3) any representations of affiliation with the federal government or the Department of Education that could be deemed misleading; and (4) any guarantees of complete loan forgiveness or rapid debt elimination in service descriptions or advertising copy. Companies should also verify that no onboarding process, customer support script, or vendor agreement requests or stores consumers' Federal Student Aid (FSA) ID login credentials.
Entity
Unidentified student loan scammers (no specific entity named)
Industry
Financial Services"September 2, 2026"
"New York Attorney General Letitia James"
"issued a consumer alert warning New Yorkers of scammers exploiting recent changes to federal student loan programs to take advantage of borrowers seeking affordable payment options and financial relief"
"Fraudsters are taking advantage of these recent changes to loan programs, leading to new scams targeting student loan borrowers"
"It is a violation of New York law to charge upfront fees for such services and violations should be reported to OAG"
"Never give your Federal Student Aid identification or login credentials to anyone."
$8.0M
New York Attorney General Letitia James secured an $8 million settlement from VGW Holdings Pty. Ltd. and its affiliates for unlawfully operating online sweepstakes casinos — Chumba Casino, Global Poker, and Luckyland Slots — that allowed New Yorkers to play casino games with virtual coins exchangeable for cash or prizes. The OAG's June 2025 cease and desist letter stopped the company from offering virtual coin gambling in New York, and Governor Hochul signed a formal ban on sweepstakes casinos into law in December 2025. Under the settlement, VGW will pay $8 million in disgorgement, penalties, and costs; note this is an illegal-gambling enforcement action rather than a privacy matter, so no privacy violation taxonomy categories apply.
$824K
New York Attorney General Letitia James secured a settlement with 425 Marcy, LLC and its principal Ezra Unger over the unlawful pre-sale of condominium units at 427 Marcy Avenue in Williamsburg before the required Martin Act offering plan was accepted for filing, and the misuse of $6.715 million in buyer down payments that were never placed in escrow. Unger agreed to repay residential buyers their down payments with interest or provide purchase credits, pay up to $824,000 in penalties, and is barred from selling securities in New York for six years. Note: this is a real estate offering-plan/escrow enforcement action rather than a data privacy matter; 'notice_failure' is the closest available taxonomy mapping (selling without the required offering plan disclosures).
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.
New York Attorney General Letitia James, joined by 21 other states and the FTC, sued Amazon for secretly overcharging its advertising customers more than $20 billion by submitting fake second-place bids to inflate ad auction prices since 2018. More than 1.2 million advertisers, including hundreds of thousands of small businesses, were allegedly overcharged. The coalition seeks a court order stopping the scheme plus penalties, restitution, and damages.
$17.1B
Attorney General James and a bipartisan coalition of 50 other attorneys general secured a landmark settlement with Meta Platforms, Inc. (Meta) worth up to $17.1 billion to address the company's harmful and addictive features targeting minors on Facebook and Instagram. The settlement requires Meta to implement significant changes, including age verification, time limits for minors, restrictions on notifications, and options to opt out of algorithmic feeds, along with monetary payments to states for mental health and education programs.
$3.3M
New York Attorney General Letitia James announced a multistate settlement with Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch for illegally coordinating to influence a daily price index for eggs, artificially inflating prices for retailers and consumers nationwide. The companies will deliver 53 million eggs to food banks across 17 participating states, pay a combined $3.3 million, and adopt compliance measures to prevent future violations.