Consumer Finance Insights
November 25, 2015

Two Student Debt Relief Companies Banned from Operating in Massachusetts

On November 24, the Massachusetts Attorney General’s Office (“AG’s Office”) announced​ that it has reached two separate settlement agreements with student debt relief companies.  The two companies agreed to assurances of discontinuance and agreed to pay $56,000 and $40,000 respectively relating to allegations of charging illegal upfront fees prior to delivering​ full and complete services, aggressive marketing practices, and misleading borrowers about​ their ability to arrange lower monthly payments.  The companies have also agreed to cease operating and advertising in Massachusetts.  The AG’s Office estimates that at least 200 students were affected by the companies’ practices and are eligible for relief.