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 free.
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.