Company that falsely promised to provide student loans has been banned from Minnesota
Attorney General Keith Ellison says his office has closed a “fraudulent” student loan settlement firm.
Ellison’s office issued a statement Thursday saying it had reached an agreement on the California-based Document Asset Center, which from now on prevents the company from doing business in Minnesota, and urges Minnesotans to who have “illegally charged” refunds.
Those refunds total $ 11,499, and they come after the company “mistakenly promised consumers that student loan waivers if only the federal government could grant federal student loans.”
In reality, according to Ellison’s office, the company has “enrolled consumers into state repayment programs that consumers can sign up to for free and then pocketed both the initial and monthly fees for them.”
It has also collected upfront fees before rendering its services, which the AG believes is illegal under state debt regulation laws.
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Document Assist Center also operated as an unregistered debt settlement service in Minnesota.
“Minnesotans take out good faith student loans so they can get an education that will help them get their lives better,” said Ellison.
“My office shows once again that we go after them when companies use this good faith to rip Minnesotans off.
“I encourage any Minnesotan who has been exploited by this or similar companies to turn to my office so we can hold these bad actors accountable.”