Minn. AG Announces Investigation in 52 Student Loan Debt Relief Companies

The Attorney General of Minnesota yesterday announced that he has opened investigations into 52 different student loan debt relief companies that are suspected of violating Minnesota law.

Many of the companies, which are based in California, appear to be offering debt settlement services to individuals in Minnesota without first registering with the state. The companies are also being investigated for violating consumer protection laws by misrepresenting the fees and services they charge while also falsely promising student loan forgiveness.

Each of the 52 companies were asked for the same information:

• Proof of the company’s license and registration to do business in Minnesota
• Identification of owners, parents, subsidiaries, affiliates, and names under which the company does or did business
• A description of products or services relating to student loans that the company marketed, offered, or provided to Minnesota consumers
• Identification of each Minnesota consumer with whom the company has contracted to provide its products and services relating to student loans, including full name, address, email address, and phone number for each such consumer, and the total amount of fees paid by each such consumer, minus refunds or chargebacks
• A description of whether the company has ever been a party to any legal proceeding, including but not limited to governmental investigations, related to the marketing, sale, or provision of its products and services relating to student loans, and if so, identify the investigating entity, court caption, location, and case number
• Identifying each Customer Relationship Management company that the company has used since August 1, 2017, if any, including dates of use
• Identifying and describing each step the company takes to ensure that it complies with the Debt Settlement Service Act, Minn. Stat. ch. 332B.

“Minnesotans just want to be able to afford their lives, and the cost of student loans that too many borrowers have to take out is already too high,” said Attorney General Keith Ellison, in a statement

. “The fact that fraudsters prey on borrowers by charging exorbitant fees and making promises they can’t deliver on is offensive. We’ve held companies like this accountable before and we’re doing it again.”