Minnesota AG Investigates Student Loan Debt Relief Companies

  • Minnesota AG Keith Ellison has opened investigations into 52 student loan debt relief companies suspected of violating the state’s consumer protection laws and failing to register as debt settlement services providers in the state.
  • According to AG Ellison, the companies are suspected of misrepresenting their fees and services and falsely promising student loan forgiveness.
  • The AG’s office sent letters to each of the 52 companies requesting information regarding their operations in Minnesota, including proof of licensure and registration and identification of all Minnesota consumers with whom the companies have contracted to provide services related to student loans.
  • Alongside the announcement of the investigations, AG Ellison issued new consumer guidance regarding the rights and obligations of student loan borrowers for reference as federal student loan repayments resume in October, as well as warning signs to look for when borrowers encounter potential student loan assistance scams.
  • To hear our deep dive into how this story showcases the power and influence of AGs and how it could reverberate through the debt servicing industry, listen to our podcast here.