On November 8, 2023, the Minnesota Attorney General (Minnesota AG) announced that the state had reached a settlement with a California-based student-loan debt-relief provider over miscellaneous state law allegations. Specifically, the Minnesota AG alleged that the company did not register as a debt settlement services provider with the Minnesota Department of Commerce as required by Minn. Stat. § 332B.03. The Minnesota AG further alleged that the company imposed charges without first executing written debt services agreements as required by Minn. Stat. § 332B.06 and failed to perform all agreed-to services. The Minnesota AG also alleged that the company misrepresented the services that it offered.
The company agreed to pay $59,909 in restitution and a $50,000 suspended civil penalty. The company agreed to cease all operations in Minnesota until becoming registered with the Minnesota Department of Commerce.