BOSTON (Legal Newsline) — Massachusetts
Attorney General Maura Healey has announced a settlement with Libre Technology
Inc. for allegations of charging Massachusetts borrowers unlawful upfront fees, among other charges. The settlement comes as part of Healey’s ongoing effort to
curb student lending industry abuses.
According to Healey’s
office, Libre is one of a number of companies that advertise “student loan debt
relief” or “Obama student loan forgiveness,” charging consumers hundreds of
dollars to help arrange lower monthly payments. The companies fail to mention
that borrowers can apply for this federal loan assistance on their own and for
Libre will refund $160,000
to more than 400 Massachusetts consumers.
“Student loan debt is
crushing students, their families and our communities, and many companies have
taken advantage of this crisis by misleading borrowers looking for help,”
Healey said. “My office will continue to protect students from these abuses and
ensure that they utilize the free federal programs available to manage their
monthly payments. We are pleased to get money back for those who were charged
illegal upfront fees for loan assistance.”
Assistant attorney general
Brook Kellerman and investigations supervisor Arwen Thoman handled the case,
with assistance from division chief Glenn Kaplan of the Attorney General’s
Insurance & Financial Services Division.