Joining Madigan in speaking about the top frauds dealing with Illinois customers had been Todd Kossow utilizing the Federal Trade Commission (FTC)вЂ™s Midwest area, Steve Bernas with all the bbb (Better Business Bureau) of Chicago and Northern Illinois and E.C. Woodson because of the U.S. Postal Inspection provider in Chicago.
MadiganвЂ™s workplace received 23,735 complaints in 2016. When it comes to ninth 12 months in a line, personal debt rated given that top issue, with 2,783 complaints involving dilemmas such as for instance home loan lending, abusive instant car title loans business collection agencies techniques and predatory pay day loans.
Number 2 regarding the list additionally when it comes to year that is ninth a line is identification theft, with 2,391 complaints.
Education-related complaints now rank quantity six, jumping a notch from last yearвЂ™s list and showing the student loan debt crisis that is ever-growing. About 44 million People in america grapple with over $1.4 trillion in education loan debt and several borrowers face problems with loan servicers and predatory schools that are for-profit.
вЂњMy office continues to see a rise in training complaints, including loan servicers that donвЂ™t provide accurate help and for-profit schools that offer useless levels,вЂќ Madigan stated. вЂњI remain invested in relief that is seeking pupils and keeping schools and loan servicers that commit fraudulence accountable.вЂќ
In January, Madigan filed case against Navient and its own predecessor Sallie Mae for the businessesвЂ™ mistreatment of education loan borrowers from start to complete вЂ“ from originating student education loans to servicing those loans and gathering on defaulted student education loans. In addition, Madigan is trying to reform education loan servicing in Illinois. Madigan has testified before Congress and urged the U.S. Department of Education to split down in the numerous abuses and frauds student that is facing. She’s over and over called from the U.S. Department of Education to instantly forgive federal loans of pupils whom went to fraudulent for-profit schools. Madigan reached a $15 million settlement with Westwood university in 2015 that forgave personal financial obligation owed by students of WestwoodвЂ™s justice program that is criminal. After resolving MadiganвЂ™s lawsuit, the school announced its closing. A lot more than 3,600 previous Westwood university students in Illinois received on average significantly more than $4,200 in relief underneath the settlement, as well as the prospective loan that is federal needed by Madigan. MadiganвЂ™s research into Everest College, that has been operated by Corinthian Colleges Inc., unveiled extensive misrepresentations made to potential students, giving support to the Department of EducationвЂ™s very own findings of fraudulence. Madigan also reached money with Education Management Corporation (EDMC), which runs five Illinois Institute of Art and Argosy University campuses in Illinois. The settlement calls for EDMC to give you disclosure to pupils in regards to the real price of the college and objectives for work positioning after graduation and forgives significantly more than $3 million in loans for Illinois pupils, and returns money fraudulently acquired through the state of Illinois. Madigan had been additionally the very first attorney general in the nation to do this against education loan debt settlement frauds. These frauds target education loan borrowers who will be eager for help avoid defaulting to their loans and get scammed into spending cash that will not reduce their debt. As soon as these scammers illegally simply take upfront costs from borrowers, they do little to help them making use of their re re re payments. MadiganвЂ™s office operates a free student loan Helpline to give you pupil borrowers with resources about repayment choices, avoiding standard or even to register an issue about loan servicing at (800) 455-2456 (TTY:1-800-964-3013). Additional information can additionally be entirely on her web site.
MadiganвЂ™s yearly top ten selection of consumer complaints ranks every problem her workplace gets on a selection of topics. As a whole, MadiganвЂ™s customer Fraud Bureau came back a lot more than $48 million in cost savings through mediation and litigation to Illinois customers in 2016. Along with personal debt, identification theft and complaints that are education-related Madigan noted other categories that topped her range of complaints included telecommunications and house fix.