ST PAUL, Minn. — A settlement hammered out by his office will keep what Minnesota Attorney General Keith Ellison calls "a fraudulent student loan debt settlement company" from doing business in the state.
In a news release, Ellison said Direct Account Management - a company based in Laguna Niguel, California - is alleged to have falsely promised Minnesota consumers forgiveness of their student loans, when in truth only the federal government can forgive federal student loans.
The AG says the company, which sometimes used the name Student Loan Advisory when speaking with potential customers, pocketed "exorbitant fees" to sign them up for federal repayment programs that loan holders can actually enroll in for free.
“Minnesotans take out student loans in good faith so they can get educations that will help them better afford their lives. My office is showing once again that when companies take advantage of that good faith to rip Minnesotans off, we will come after them,” Ellison promised. “I encourage any Minnesotan who’s been preyed upon by this company or others like it to contact my office so we can hold these bad actors accountable.”
Along with no longer doing business in the state, the settlement - filed in Ramsey County - requires Direct Account Management to pay the state more than $20,000, the full amount collected from Minnesota consumers. The AG's office says all that money will be used for restitution for those impacted by the alleged fraud.
Ellison says this action is the 13th time his office has shut down a fraudulent student loan debt relief company in Minnesota.
Anyone who has been victimized by Direct Account Management or any other company alleged to be conducting fraudulent business is encouraged to contact the Minnesota Attorney General’s Office by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota). You can also file a complaint online.
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