BISMARCK – North Dakota Attorney General Wayne Stenehjem has ordered Student Loan Services LLC to reimburse clients in the state and to stop doing business here.
The California student debt relief company is not licensed in North Dakota, and Stenehjem says it cannot operate in the state until it is in full compliance with the law. state licenses. Debt relief companies must be licensed by the North Dakota Department of Financial Institutions and post a bond with the state.
The attorney general’s consumer protection division investigated the company after a woman who paid the company nearly $ 900 filed a complaint, saying she had not received services for several months after the start of payments. The company had taken no action to reduce its student debt, according to Stenehjem’s office.
Student Loan Services, which had contracts with 18 people in North Dakota, agreed to cancel all of those contracts and reimburse anyone who asks. The company is prohibited from soliciting new clients in the state until it complies with licensing requirements.
Student debt relief companies charge fees to help reduce or eliminate loan payments and customer debt by enrolling customers in federal student relief programs. Almost all of the services offered by these companies can be provided for free.