52 student loan debt reduction businesses are being looked into by the Attorney General of Minnesota on suspicion of breaking the law.
According to the article from MPR News, After student loan interest started to accrue once more earlier this week, Attorney General of Minnesota Keith Ellison announced the investigation. Due to the COVID-19 pandemic, student loan payments had been suspended for more than three years.
Many of the 52 businesses appear to offer debt-settlement services to customers without registering as required by Attorney General of Minnesota; they are mostly based in California. The Attorney General of Minnesota’s office claims that these businesses breached consumer protection rules by making false promises about fees and services as well as student loan forgiveness. Only the federal government has the authority to grant such pardon.
According to a statement released by his office, the businesses are all suspected of breaking the law’s requirements for registration and consumer protection.
According to Twin Cities, the Attorney General of Minnesota has launched the most recent inquiry after taking more than a dozen enforcement measures to close down these kinds of illegal businesses since 2016.
Ellison’s office claimed that as a result of these measures, millions of dollars that were stolen from consumers by shady student loan debt relief businesses have been recovered and refunded.
Residents of Minnesota who believe they have been a victim of fraud should get in touch with Attorney General of Minnesota’s office by calling 651-296-3353 or 800-657-3787, or by filling out an online Consumer Assistance Request Form.