WA students receiving money recovered from debt adjusters over college loans

Attorney General Bob Ferguson announced that his office has recovered more than $2 million from nearly three dozen debt adjusters who they say preyed on student borrowers. 

According to the AG, 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 as they navigate signing up for then paying off student loans.   

In a release, Ferguson’s office said that in this year alone they have 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, the initiative has already helped 2,652 Washington consumers by resolving cases against 35 entities, resulting in payments averaging nearly $800 per borrower.

“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.

Attorney General’s Office Student Loan Adjuster Cases as of 9/21/2023