On December 16, 2020, the Pennsylvania Attorney General (Pennsylvania AG) announced a settlement with a California-based student loan forgiveness company for alleged violations of state consumer protection laws. According to the Pennslyvania AG, the company used false advertising tactics and posted fraudulent customer reviews on the Better Business Bureau website. Further, the company allegedly charged borrowers fees to enroll in Income Driven Plans (IDRs), which are free to enroll in.
The settlement requires the company to cease all operations in Pennslyvania, refund $74,000 in fees charged to consumers, and pay $50,000 in costs and penalties.