Legal professional Common Ellison Shuts Down Fraudulent Scholar Mortgage Debt Settlement Firm in Minnesota

ST. PAUL, MN (Valley Information Dwell) – Minnesota Legal professional Common Keith Ellison introduced Thursday that his workplace has received a settlement, requiring a California pupil mortgage debt reduction firm to offer refunds to its Minnesota prospects and stop operations.

This after the corporate charged charges to prospects and misrepresented its providers.

Categorical Enrollment, LLC, doing enterprise as SLFD Processing, a Santa Ana, California-based firm, is alleged to have falsely promised customers pupil mortgage forgiveness, when solely the federal authorities can forgive federal pupil loans.

In actuality, the Legal professional Common alleges that every one the corporate did was enroll customers in federal fee packages that customers can enroll themselves in at no cost, after which pocketed exorbitant charges for doing so.

He additionally collected his charges upfront earlier than performing promised providers, which is against the law below Minnesota regulation regulating debt settlement providers. As well as, SLFD Processing was working with out registering as a supplier of debt settlement providers, as required by Minnesota regulation.

The settlement, filed in Ramsey County District Courtroom, requires SLFD Processing to right away pay the State $50,000, which the Legal professional Common’s Workplace will use to offer restitution to customers.

The settlement additionally requires SLFD Processing to stop operations in Minnesota until and till it registers as a supplier of debt settlement providers.

“Minnesotans apply for pupil loans in good religion to allow them to get an training to assist pay for his or her lives. We’re proving as soon as once more that when firms benefit from that good religion to defraud Minnesotans, we are going to go after them,” stated Legal professional Common Ellison. “I encourage any Minnesotans who’ve been victimized by this firm or others prefer it to contact my workplace so we will maintain these unhealthy actors accountable.”

Scholar mortgage debt reduction firms usually cost customers tons of or hundreds of {dollars} in unlawful up-front charges to enroll them in fee plans or consolidation loans that every one eligible federal pupil mortgage debtors can apply for on their very own. freed from cost via the US Division of Schooling. Schooling.

Usually these firms mislead customers into considering the charges will go towards paying off customers’ pupil mortgage debt, when the businesses really pocket the charges.

This settlement marks the eleventh time the Minnesota Legal professional Common’s workplace has shut down a fraudulent pupil mortgage debt reduction firm in Minnesota.

Legal professional Common Ellison encourages anybody who has been a sufferer of SLFD Processing to contact his workplace by calling (651) 296-3353 or (800) 657-3787, or by submitting a criticism type on the Legal professional Common’s web site at https://www.ag.state.mn.us/workplace/Types/ConsumerAssistanceRequest.asp.

The Legal professional Common’s Workplace encourages debtors to go to its web site for extra data on avoiding pupil mortgage scams, together with a put up titled Scholar mortgage help firms that cost excessive charges for what you are able to do at no cost.

Scholar mortgage debtors can entry the US Division of Schooling web site: — for extra data on federal pupil mortgage reimbursement packages accessible to all eligible debtors freed from cost

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