DC Attorney General Obtains $425,000 Judgment Against Student Debt Relief Services Provider

State AGs  •  Student Loans

On November 29, the District of Columbia Attorney General (DC AG) announced that it had obtained a judgment​ against a company offering student loan debt relief services.  The D.C. Superior Court found that the company had violated the D.C. Consumer Protection Procedure Act (CPPA) by deceptively advertising services to consolidate, forgive, or lower payments on consumers’ student loans, falsely representing that it was affiliated with the federal government, and collecting fees for services that were offered for free by the U.S. Department of Education.  The Court further found that the company had violated the D.C. Consumer Credit Services Organization Act (CCSOA) by charging up-front fees for their services without first establishing a trust account or acquiring a surety bond.  The company was ordered to pay $233,000 in civil penalties and over $190,000 in restitution.  The court also enjoined the company from misleading customers and charging up-front fees for student loan debt relief services going forward.

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