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Business ProfileforNSLFC, LLC
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OLYMPIA — Attorney General Bob Ferguson announced today that his office has recovered more than $2 million from nearly three dozen debt adjusters who preyed on student borrowers. These entities engaged in unfair and deceptive practices, including unlawfully charging tens of thousands of dollars in excessive fees to thousands of Washingtonians.
The effort pursuing these recoveries is part of the Attorney General’s Student Loan Initiative to help borrowers navigate the complexity of signing up for then paying off student loans.
This year alone, Ferguson’s office resolved cases against three out-of-state debt adjusters, who are now required to pay 495 borrowers $359,832 in restitution. Every impacted Washingtonian is receiving a full reimbursement of unlawfully charged fees. In all, Ferguson’s initiative to root out predatory debt services has already helped 2,652 Washington consumers by resolving cases against 35 entities, resulting in payments averaging nearly $800 per borrower.
This comes at a time when the federal government is restarting student loan payments.
“It is a chaotic time for millions of borrowers as student loan repayments resume after more than three years,” Ferguson said. “My office is committed to protecting Washingtonians from companies that take advantage of consumers who are simply trying to manage their debt.”
Consumers who suspect they were charged or paid fees in excess of what is allowed under the law are encouraged to submit a complaint to the Attorney General’s Office Consumer Protection Division.
Student loan debt adjustment firms offer to help students complete and submit paperwork to the U.S. Department of Education to consolidate their federal student loans. But information about repayment options and help consolidating federal student loans is available — for free — directly from the U.S. Department of Education. Borrowers can also contact the company to which they currently make payments for information about consolidation and repayment options like income-based repayment.
Under the Debt Adjustment Act, the maximum upfront fee a debt adjuster can legally charge is $25. The companies investigated by Ferguson’s office charged anywhere from several hundred to thousands in upfront fees. Borrowers were also charged monthly “monitoring” fees in excess of the legal limit and without a clear understanding that these fees would span the life of the loan. The law limits those monitoring fees to no more than 15% of the payment amount. For example, a person paying $300 a month may not be charged more than $45 per month in monitoring fees.
Other unlawful actions by these debt adjusters included:
- False claims of an affiliation with the federal Department of Education;
- Aggressive marketing of “student loan forgiveness” for ineligible loans;
- Claims of employing student loan “experts” when staff had no industry experience;
- And claims to expedite loan consolidation despite an inability to actually do so.
The restitution recovered so far from all the financial entities totals $2,004,205 for an average of $755 per consumer. The resolutions also include payment of $321,035 in attorneys’ fees to the Attorney General, which covers the costs of investigation.
At-a-glance
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Business Details
- Location of This Business
- 3435 Wilshire Blvd STE 2870, Los Angeles, CA 90010-1938
- BBB File Opened:
- 3/2/2017
- Years in Business:
- 8
- Business Started:
- 4/1/2016
- Business Incorporated:
- 4/12/2016
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.
- Type of Entity:
- Limited Liability Company (LLC)
- Business Management
- Alex Neal, Owner
- Contact Information
Principal
- Alex Neal, Owner
Customer Contact
- Alex Neal, Owner
- Additional Contact Information
Phone Numbers
- (323) 325-1175Other Phone
- (323) 325-1175
Customer Complaints
0 Customer Complaints
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