BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced April 12 that We Florida Financial (We Florida), a credit union based in Florida, will pay $898,000 to resolve allegations it delivered loans for ineffective online study materials to more than 200 Massachusetts consumers.
The College Network duped students into thinking that its education materials could help them earn passing scores on equivalency exams and college credits, according to allegations. These materials cost thousands of dollars, yet were allegedly ineffective.
We Florida, which provided loans to the students to purchase the items from The College Network, will discharge loans made to consumers in the state for purchases of these educational services. The total outstanding balance on these loans is roughly $748,000. We Florida will also pay $150,000 in penalties.
“The College Network treated their students like ATM machines,” Healey said in a statement. “With this settlement, more than 200 students will receive discharges and refunds and we are sending a clear message to lenders.”
Handling the case for Massachusetts were John Michael Partesotti and Arwen Thoman of Healey’s Insurance and Financial Services Division. Shannon Roark of the attorney general's Civil Investigations Division assisted.
The settlement was filed in Suffolk Superior Court.
Editor's Note: This story was updated to correct inaccurate details related to We Florida and its role in the allegations.
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