Debt relief companies, once focused primarily on credit card, medical, and tax debt, are now targeting consumers faced with insurmountable student loan debt.
The Consumer Financial Protection Bureau has reported that student debt is the highest its ever been. Consequently, so-called student loan relief companies offer a “too-good-to-be-true” solution: they offer to assist consumers in obtaining lower interest rates, refinancing, forbearance, or discharge of their loans.
The associated advertisements for student loan relief programs are typically crafted to deceive consumers because the programs they are offering are free through pre-existing federal programs. As recently noted in the Chicago Tribune, Illinois Attorney General Lisa Madigan has filed lawsuits against Broadsword Student Advantage LLC and First American Tax Defense LLC, alleging these companies have violated that state’s consumer-fraud and debt-settlement acts.
Washington State has strict regulations on debt adjusting. Such companies cannot, among other restrictions, collect more than an initial $25.00 fee, for example. Those affected by such schemes have many legal remedies under the Washington Debt Adjusting and Consumer Protection Acts.
Spokane debt settlement lawyer Mack Mayo has represented thousands of clients in class actions against debt relief companies who have collected illegal fees.
If you have fallen victim to a debt relief scheme and would like to speak to a lawyer, feel free to call us at (509) 381-5091 or use our secure contact form here.
The Law Office of Boyd M. Mayo is a Spokane civil litigation firm dedicated to seeking justice for individuals and classes of people. All consultations are free and confidential.