Shapiro bans Equitable Acceptance from refinancing student loan debt

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Pennsylvania AG Josh Shapiro

Pennsylvania Attorney General Josh Shapiro permanently stopped the business operations of Equitable Acceptance, which he described as a predatory third-party financing company based in Minnesota.

The Attorney General’s Office Bureau of Consumer Protection investigated the business practices of Equitable Acceptance. The bureau found that the company misrepresented to consumers that its financing plan was a revolving credit plan. In reality, it was a closed-end transaction.

Equitable Acceptance falsely claimed to consumers that it retained a security interest as a result of its financing agreements for student loan debt relief services.

The bureau also found that the company charged unacceptable high rates ranging from 17.99% to 20.99% to Pennsylvania borrowers who were already scammed by student loan debt relief companies.

Equitable Acceptance violated the Unfair Trade Practices and Consumer Protection Law and the Federal Truth in Lending Act, according to the Attorney General’s Office.

Equitable Acceptance settles with Pennsylvania Attorney General’s Office

On Tuesday, AG Shapiro announced that Equitable Acceptance agreed to settle the charges against it.