Illinois is having an issue with scams. One in five people falls prey to scams in the United States which costs the economy $50 billion. Almost 24,000 complaints were reported to Attorney General Lisa Madigan’s office in 2016.

 

Illinois is having an issue with scams. One in five people falls prey to scams in the United States which costs the economy $50 billion. Almost 24,000 complaints were reported to Attorney General Lisa Madigan’s office in 2016.

The Attorney General recently accounted her annual top ten consumer complaints. One of the more common categories was education-related. The two main concerns were, “Predatory, for-profit schools and the other one is students and former students who are contending with their student loan debt,” cited Attorney General Lisa Madigan.

The expanding student loan crisis continues one of the country’s biggest problems. With over $1.4 trillion in debt nationally, it is the second largest debt in America next to credit card debt.

“We want to make sure that student loan servicers are prohibited from misleading borrowers, that they are required to explain to borrowers what their repayment options are, and we want to make sure that the services are informing borrowers when their loans are eligible to be forgiven,” said Madigan.

From the Illinois Attorney General website, “My office continues to see an increase in education complaints, including loan servicers that don’t provide accurate assistance and for-profit schools that provide worthless degrees,” Madigan said. “I remain committed to seeking relief for students and holding schools and loan servicers that commit fraud accountable.”

The same issue of holding servicers accountable is something that came up with CFPB’s lawsuit against Navient. “At every stage of repayment on student loans, Navient has failed to follow the law and caused borrowers needless anxiety and aggravation,” CFPB director Richard Cordray said on a conference call with reporters. “Borrowers and the CFPB have reason to expect better from the nation’s largest student loan servicer.”