Illinois AG sues student loan debt settlement firms
Source: Chicago Tribune
Illinois Attorney General Lisa Madigan filed two lawsuits Monday against debt-settlement firms that she claimed perpetrated “scams” against consumers trying to pay off their student loans.
The two lawsuits filed Monday make Illinois the first state to target firms offering to help consumers repay their student loan debts in exchange for as much as $1,200 upfront. Others are expected as the mortgage crisis subsides, and regulators turn their attention to other financial scams, including outfits trying to help people repay more than $1 trillion in outstanding student loan debt.
One of the suits, against Broadsword Student Advantage LLC of Frisco, Texas, was filed in Champaign County Circuit Court. The second suit, against First American Tax Defense LLC of Park Ridge, was filed in Cook County Circuit Court.
Broadsword and First American Tax, which was founded in 2012, couldn’t be reached for immediate comment. The lawsuits allege that they violated consumer-fraud and debt-settlement acts.
Read more: http://www.chicagotribune.com/business/breaking/chi-student-loan-debt-lawsuit-20140714,0,4350725.story
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