AG Ellison requires California-based student loan debt relief scam to refund MN clients
MINNEAPOLIS -- Attorney General Keith Ellison announced on Wednesday that his office has reached a settlement with Network 46, a California-based student loan debt relief company, for illegally collecting fees and misrepresenting services.
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The settlement was filed in Ramsey County and alleges the following:
- Network 46 was pocketing steep fees from enrolling clients in federal repayment programs that citizens can enroll themselves in for free. Additionally, the settlement alleges that Network 46 charged these fees before performing the promised services, which is illegal under Minnesota law.
- Network 46 is also alleged to have misrepresented its services related to student-loan forgiveness, offering services to forgive federal student loans. Only the federal government can forgive federal student loans.
- Network 46 was operating without registering as a debt-settlement service provider, as required by Minnesota law.
The terms of the settlement require Network 46 to fully refund their Minnesota clients, totaling over $59,000.
"Taking advantage of people struggling with their student loans is as low as it gets. It's a relief to know that Network 46 will no longer be able to cheat borrowers," said Ellison. "I am glad that the terms of this settlement include paying back every cent this company scammed out of folks who were just trying to afford their lives. To any Minnesotan that has been ripped off by Network 46 or other scam debt-relief companies, I encourage you to contact my office so we can hold them accountable."
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Network 46, based out of Orange County, California, is one of the 52 student-loan debt-relief companies that's being investigated by Attorney General Ellison for suspected violations of Minnesota law.
This settlement marks the 15th time the Attorney General's office has shut down a fraudulent student-loan debt-relief company in Minnesota. Since 2016, over $1.5 million has been recovered and returned to Minnesota consumers victimized by fraudulent student loan debt settlement companies.
If you or anyone you know believes they've been victimized by a fraudulent student loan debt company, Ellison encourages they contact the Minnesota Attorney General's Office by calling (651) 296-3353 (Metro area) or (800) 657-3787 (Greater Minnesota).
You can also submit a complaint form on the Attorney General's website.
