SE HABLA ESPAÑOL | MAP
312-739-4200
Contact Us

Contact Us

Archives

  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013

  • Areas & Topics

    Frquently Asked Questions

    Our Office Location

    Edelman, Combs, Latturner, & Goodwin, LLC

    20 South Clark Street
    Suite 1500
    Chicago, IL 60603

    info@edcombs.com
    Phone: 312-739-4200
    Fax: 312-419-0379


    E-mail Us  |  Chicago Law Office

    Edelman Combs Latturner Goodwin's facebook page   Edelman Combs Latturner Goodwin's Twitter Page   Edelman Combs Latturner Goodwin's Google Plus Page

    Student loan debt settlement firms sued

    Illinois AG sues student loan debt settlement firms.

    The Chicago Tribune (7/15, Yerak, 2.3M) reports that Illinois Attorney General Lisa Madigan has filed suit against Broadsword Student Advantage LLC and First American Tax Defense LLC, claiming that the debt-settlement firms “perpetrated ‘scams’ against consumers trying to pay off their student loans.” The Tribune reports that the lawsuits mark the first time a state has targeted “firms offering to help consumers repay their student loan debts in exchange for as much as $1,200 upfront.” The Tribune reports that the lawsuit argues that the firms claim to have the power to negotiate lower payments and “get loans out of default,” when in reality, those options “are already available for free from” ED.

    The AP (7/15, Tareen) reports that the lawsuits allege that the firms “are scamming people who are paying student loan debts,” and that they are engaging in “‘deceptive practices’ for charging up-front fees for phony services or for services that are already free.” Madigan said that her office has received dozens of complaints about the firms, and that their “advertisements on radio, online and signs affixed to lamp posts and fences offered student loan forgiveness or lowered payments.”

    The Christian Science Monitor (7/14, Paulson, 566K) reports that Madigan “took aim Monday at the debt settlement industry – long a hotbed of scams.” The piece notes that experts say that such scams “have been a problem for some time, and that their current focus on student borrowers is not surprising, given the way student-loan debt has skyrocketed.” Madigan alleges that the firms “are in violation of several consumer-protection statutes and use fraudulent means to lure borrowers into using their services and paying heavy up-front fees.” The firms advertise that they would enroll consumers in “the ‘Obama Forgiveness Program’ – which does not exist – or for government services that anyone can use for free.”