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Consumer Finance Insights
November 9, 2023

Minnesota AG Reaches Settlement with Student-Loan Debt Relief Company

On November 8, 2023, the Minnesota Attorney General (Minnesota AG) announced that the state had reached a settlement with a California-based student-loan debt-relief provider ​​over miscellaneous state law allegations.  Specifically, the Minnesota AG alleged that the company did not register as a debt settlement services provider ​with the Minnesota Department of Commerce as required by Minn. Stat. § 332B.03.  The Minnesota AG further alleged that the company imposed charges without first executing written debt services agreements as required by Minn. Stat. § 332B.06 and failed to perform all agreed-to services. The Minnesota AG also alleged that the company misrepresented the services that it offered.

The company agreed to pay $59,909 in restitution and a $50,000 suspended civil penalty.  The company agreed to cease all operations in Minnesota until becoming registered with the Minnesota Department of Commerce.

The post Minnesota AG Reaches Settlement with Student-Loan Debt Relief Company appeared first on Consumer Finance Insights (CFI).