Two Student Loan Companies Face Law Suit in Illinois

Two Student Loan Companies Face Law Suit in IllinoisAs per Lisa Madigan the Illinois Attorney General, two companies which offer help to borrowers aiming to solve student debt are running scams. They are making their targeted victim to pay up-front for vague solutions to certain problems which the government programs offer to solve for free.

On Monday Madigan announced that the state of Illinois is the first to file suit against the two supposedly scamming companies offering student debt relief. One of them is First American Tax Defense based in Chicago.

Madigan mentioned during a news conference on Monday, "The scam for them is preying on financially susceptible individuals by claiming that they can eliminate or reduce your student loan debt, What they really do is demand your credit card number, your bank account number and immediately charge you as much as $1,200."

In Illinois it is not legal for companies to charge an amount for debt relief services prior to actually rendering any service. Any company rendering such services have to be licensed too. First American Tax Defense and Broadsword Student Advantage based in Texas have violated these laws said Madigan.