Attorney General Madigan files lawsuits against student debt relief companies

ILLINOIS - Illinois Attorney General Lisa Madigan has filed five lawsuits against companies who are allegedly targeting residents who are struggling to repay their student loan debt.

The companies that were named in the lawsuits are listed below:

- Consumer Financial Resources LLC, which operated as Student Loan Resolve
- Federal Student Loan Alliance LLC
- Interactiv Education LLC, that operated as Direct Student Aid
- Nationwide Student Aid
- Student Consulting Group Inc., which as University of One and Help Assist Me Default Resolution Services

In the lawsuits, Madigan alleges that the companies charge borrowers large upfront fees for debt relief options and programs that either do nothing to reduce debt loads, or are already available to the borrowers for free.  The lawsuits also allege that the companies are violating an Illinois law that prohibits companies from charging upfront fees for debt settlement services.

Madigan also says these lawsuits are part of a new effort against scams that target people with student loan debt.  In addition to announcing the lawsuits, Madigan announced the launch of a new helpline for borrowers who hold student loans, which can be reached at (800) 455-2456.

Current Conditions
  • Current Events