Blog Enforcement Watch October 07, 2020

Massachusetts AG Obtains Judgment Against Student Loan Debt Relief Company

On October 7, 2020, the Massachusetts Attorney General’s Office (Massachusetts AG) announced a judgment obtained against a student loan debt relief company in Suffolk Superior Court for allegedly unlawful and predatory business practices. According to the AG, the company charged unlawful upfront and continuing fees to consumers, misrepresented the scope of their services, and misled consumers about the company’s identity and connection to the federal government.

Pursuant to the judgment, the company will pay $130,000 in civil penalties and $16,000 in restitution to affected consumers. The company will also be precluded from conducting any further business in Massachusetts until it fully complies with the state’s credit services laws.

This suit is the sixth in a series of actions the Massachusetts AG has taken against student loan debt relief companies, since its 2015 announcement of an enforcement initiative targeting allegedly unlawful student loan debt relief practices.