Student Debt Firms Settle With New York For $5.5M

Law360 (May 22, 2020, 6:01 PM EDT) -- Two purported student debt servicers and their executives will pay $5.5 million to end claims they duped student borrowers into paying for loan services that should have been free, New York's attorney general said Friday.

According to documents filed Friday in Manhattan federal court by the office of New York Attorney General Letitia James, three entity defendants, Debt Resolve Inc, Student Loan Care LLC and Progress Advocates LLC, and two individual defendants, Bruce Bellmare and Stanley E. Freimuth, are liable for the multimillion-dollar sum as part of their agreement to settle the office's student debt fraud claims.

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