THURSDAY, JULY 12, 2018
Southeast Financial CU Settles with Massachusetts over Financing Fraudulent Academic Services
Southeast Financial Credit Union (Franklin, TN) will provide $650,000 in loan relief and cash refunds to more than 500 Massachusetts students, according to Massachusetts Attorney General Maura Healey.
Southeast Financial Credit Union will discharge approximately $450,000 in loans made to Massachusetts students of The College Network, a for-profit company that marketed online study guides and educational services to consumers, including many prospective nurses. The credit union will also provide almost $200,000 in cash refunds to students.
As part of the settlement agreement, Southeast Financial Credit Union will request the removal of negative loan information from the consumers’ credit reports.
The complaint by the Attorney General's Office alleged that between January 2010 and May 2016, The College Network misled consumers by representing that its educational materials would help them achieve passing scores on equivalency exams and earn college credit in fields such as nursing and healthcare administration.
Attorney General Healey stated: “The College Network cheated hundreds of Massachusetts consumers by making false promises about their online educational materials and services. This settlement holds the lender accountable for profiting from this scheme."
This is the second settlement by Southeast Financial Credit Union regarding its financing loans for The College Network. Earlier this year, Southeast Financial settled with New York issuing a refund of $2.25 million.
In related news, We Florida Financial Credit Union (Margate, FL) provided $898,000 in relief to more than 200 Massachusetts students for financing expensive and ineffective online study materials and educational services from The College Network.
As part of the April settlement agreement, the credit union discharged $748,000 in loans and would provide $150,000 in refunds to students. The credit union will also request the removal of negative loan information from the consumers' credit report.
Read the press release.
POSTED BY KEITH LEGGETT AT 7:00 AM
LABELS: LAWSUIT, LEGAL