The state is suing five companies that promised student loan debt relief but allegedly were scams. The companies, located in Illinois and four other states, allegedly charged up-front fees and provided no services, or services that are available for free elsewhere. Attorney General Lisa Madigan wants this to stop.
“We want those contracts rescinded, we want these folks to stop operating the scam in the state of Illinois, and we want people to get their money back, because they should have never had to pay for the service in the first place. These entities are clearly breaking the law,” she said.
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Madigan says the up-front payment that the firms demanded was typically around $600. The suits were filed in Champaign, Cook and Sangamon counties, though Madigan says the people who complained are all over the state. She says the scam is just like mortgage scams during the recession: People are desperate for help, and they fall victim to con artists.
The defendants are Consumer Financial Resources LLC of Texas, which operated as Student Loan Resolve; Federal Student Loan Alliance LLC of California; Interactiv Education LLC of Florida, which operated as Direct Student Aid; Nationwide Student Aid, based in Chicago; and Student Consulting Group of Georgia, which solicited customers as University of One and Help Assist Me Default Resolution Services.