SEATTLE (Legal Newsline) — Washington State Attorney General Bob Ferguson has announced his office has brought a lawsuit against Student Aid Center Inc. and its owners, Ramiro Fernandez-Moris and Damien Alvarez, accusing them of charging students illegal fees for debt adjustment services and consolidating student loans.
From 2013 to 2015, the company allegedly advertised debt relief services for student loans, saying it could offer an “Obama student loan forgiveness program” and attempting to associate itself with the federal government. A total of $500,000 in fees was paid by more than 800 Washington consumers for these “services.” The state says the defendants charged more than the legal maximum $25 in initial fees for debt adjustment.
“In 2015, Washington students graduated with an average of nearly $25,000 in debt,” Ferguson said. “I will not tolerate the financial abuse of already overburdened Washington students.”
Ferguson’s office charges the defendants violated the state’s Consumer Protection Act, Debt Adjustors Act and Credit Services Organizations Act. The attorney general seeks a court finding that would invalidate Student Aid Center’s contracts, order the defendants to provide refunds and order them to end the alleged deceptive practices.