Lisa Madigan To File Lawsuits Targeting Student Loan Debt ‘Scams'
From the Chicago Sun-Times
Illinois Attorney General Lisa Madigan is expected to file two lawsuits Monday against two companies that, she alleges, have preyed on those trying to lighten their student loan debt.
The separate suits, the first of their kind in the U.S., will be filed against Texas-based Broadsword Student Advantage LLC and First American Tax Defense LLC, based in Chicago, according to a release from Madigan’s office.
Madigan alleges that the two unlicensed companies “engaged in deceptive marketing practices and illegally charged consumers hundreds of dollars in upfront fees to reduce or eliminate their student loan debt burden.”
The companies “sought to scam vulnerable people into paying as much as $1,200 upfront for bogus services, including the fake ‘Obama forgiveness program,’ or for government services that are already free of charge,” Madigan’s office said.
The lawsuits allege the companies are in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, the Credit Services Organizations Act, and the Debt Settlement Consumer Protection Act, according to Madigan’s office.
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From the Chicago Sun-Times
Illinois Attorney General Lisa Madigan is expected to file two lawsuits Monday against two companies that, she alleges, have preyed on those trying to lighten their student loan debt.
The separate suits, the first of their kind in the U.S., will be filed against Texas-based Broadsword Student Advantage LLC and First American Tax Defense LLC, based in Chicago, according to a release from Madigan’s office.
Madigan alleges that the two unlicensed companies “engaged in deceptive marketing practices and illegally charged consumers hundreds of dollars in upfront fees to reduce or eliminate their student loan debt burden.”
The companies “sought to scam vulnerable people into paying as much as $1,200 upfront for bogus services, including the fake ‘Obama forgiveness program,’ or for government services that are already free of charge,” Madigan’s office said.
The lawsuits allege the companies are in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, the Credit Services Organizations Act, and the Debt Settlement Consumer Protection Act, according to Madigan’s office.
Read more in our daily News Update...