Texas residents may be interested to learn that the attorney general of
Illinois has filed lawsuits against five debt relief companies that prey
on people who are behind on their student loan payments. The companies
are accused of breaking state law by demanding service fees up front.
None of the fees, which totaled as much as $1,250, were applied to the
student loan debts.
The debt relief companies named in the lawsuits are Consumer Loan Financial
Services LLC, Federal Student Loan Alliance, Interactiv Education LLC,
Student Consulting Group Inc. and Nationwide Student Aid LLC. The lawsuits
seek to obtain refunds for consumers who paid fees to the companies. The
state has also created a new help line for residents who need advice on
paying back their student loans.
Companies that offer paid debt relief advice have long preyed upon consumers
with mortgage and
credit card debt, but they have recently stepped up their efforts to target individuals
who are behind on their student loan payments. The Illinois lawsuits are
part of a growing effort by state attorneys general nationwide to fight
back against the trend. According to experts, consumers should never have
to pay for help with their student loan debts.
Consumers who are having difficulty repaying their student loans may wish
to seek the advice of an attorney. Legal counsel could go over all the
legitimate student loan repayment options available. An attorney could
also review a client's other financial challenges, such as credit
card debt or unpaid medical bills, and offer guidance on debt elimination
and other forms of
Have more questions?
Contact our Houston bankruptcy lawyer today for answers!