Minnesota’s AG Raids Student-Loan Debt-Relief Industry Operating Within the State

On September 6, 2023, the Minnesota Attorney General’s Office (“Minnesota”) announced that it has begun investigating the operations of more than 50 student-loan debt-relief companies suspected of violating consumer protection laws in the State of Minnesota. While many of the targeted companies are headquartered in California, Minnesota’s sweeping crackdown is not limited to any particular state or region within the United States so long as the company does business within the State of Minnesota. To read the full announcement, go here.

This announcement comes as little surprise given that Minnesota has a history of shutting down fraudulent student-loan debt-relief companies. As recently as February 2023, Minnesota AG’s Office entered into a settlement with one such California-based company with more than $20,000 in restitution to be paid to consumers.