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The attorney general alleged that the company overcharged customers and collected unlawful fees, a 2016 news release said.
DFL agreed in 2017 to cease doing business in Massachusetts after the state attorney general alleged it had charged borrowers illegal upfront fees.
The company used the US Direct Student Loan Services name to give consumers the false impression it was associated with the U.S. Education Department, the Massachusetts attorney general alleged.
Enforcement actions: The Massachusetts settlement, filed in Suffolk Superior Court, directed DFL to repay $6,500 to 18 student loan borrowers. The company agreed to stop providing student loan services to state residents, and not to sell any customer information it may have collected in the state, the attorney general’s office said.
What the company claims to provide: Student loan consolidation, repayment and forgiveness plans
Based: Orlando, Florida
Sources: Massachusetts attorney general, Washington attorney general