BOSTON — A California loan debt relief company which faced allegations by Massachusetts Attorney General Maura Healey of charging unlawful upfront fees and misleading consumers, has agreed to pay $44,593 and to stop doing business in Massachusetts.
The Massachusetts Attorney General's Office alleged that United Advisors Group, LLC charged student loan borrowers upfront fees, which violated Massachusetts state laws and misrepresented the services provided to customers.
The recent enforcement actions are the fifth in a series brought against student debt relief companies by the Massachusetts Attorney General's Office.
"Student loan 'debt relief' companies often advertise on the internet and market student loan 'forgiveness,'" the Attorney Generals Office said in a statement. "They typically induce borrowers to pay hundreds of dollars in unnecessary fees to get federal student loans out of default, apply for federal consolidation loans, or enroll in income-driven repayment plans."
The settlement with United Advisors includes the company giving full refunds to all Massachusetts customers. The company is also prohibited from doing business in the state of Massachusetts or from selling or disseminating customer information it collected.