On March 27, 2017, the North Carolina Attorney General (“AG”) announced that it had settled a lawsuit filed in the Wake County, North Carolina Superior Court against a student loan company. As a result of the settlement, the parties filed a consent judgment requiring that the company pay $377,048 in restitution to 377 North Carolina student borrowers.
According to the AG, the company operated a “student loan debt relief scheme.” The scheme allegedly involved falsely promising borrowers that the company could reduce students’ debt burden. The company also allegedly charged large illegal upfront fees for the debt relief services. As part of the settlement agreement, the company agreed to pay $377,048 in restitution to affected consumers, and to stop charging illegal upfront fees and engaging in false or deceptive advertising.