Five student loan debt relief companies have reached a $19 million settlement with more than 20,000 borrowers.
According to the Consumer Financial Protection Bureau, the settlement is in connection with “unlawful advance fees” charged by: Docu Prep Center, Certified Doc Prep Services, Assure Direct Services, Direct Document Solutions, and Secure Preparation Services.
“All the companies were associated with Monster Loans and Lend Tech Loans,” the report read.
It is alleged that the companies lied about reducing the borrower’s interest rates, improving their credit scores, and adding the U.S. Department of Education as a service provider.
The lawsuit also accuses the five companies of violating telemarketing rules by unlawfully collecting advance fees.
According to CFPB, Monster Loans and Land Tech Loans are accused of violating the Fair Credit Reporting Act by targeting debt relief companies using credit information obtained illegally from national credit reporting companies.
Borrowers linked to Lend Tech Loans and Monster Loans will receive checks in the upcoming weeks.
