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Judge lets New York pursue student loan debt relief fraud case – Reuters

NEW YORK (Reuters) – A federal judge said New Yorks attorney general may pursue a lawsuit accusing Debt Resolve Inc and nine other defendants of involvement in a scheme to induce thousands of struggling student loan borrowers into paying for debt relief services they could have gotten for free.

U.S. District Judge Alison Nathan in Manhattan on Wednesday rejected requests by Debt Resolve, Chief Executive Bruce Bellmare, his predecessor Stanley Freimuth, and the other defendants to dismiss the September 2018 lawsuit.

Eric Krejci, a lawyer for Debt Resolve, Bellmare and Freimuth, declined to comment.

They had argued that Attorney General Letitia James failed to plead facts supporting this allegedly fraudulent debt relief scheme with particu…

Read the full article at: https://www.reuters.com/article/us-new-york-students-lawsuit/judge-lets-new-york-pursue-student-loan-debt-relief-fraud-case-idUSKCN1TY2U1

Category: Debt HelpBy Insolvency GuardianJuly 4, 2019

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Judge lets New York pursue student loan debt relief fraud case – Reuters

NEW YORK (Reuters) – A federal judge said New Yorks attorney general may pursue a lawsuit accusing Debt Resolve Inc and nine other defendants of involvement in a scheme to induce thousands of struggling student loan borrowers into paying for debt relief services they could have gotten for free.

U.S. District Judge Alison Nathan in Manhattan on Wednesday rejected requests by Debt Resolve, Chief Executive Bruce Bellmare, his predecessor Stanley Freimuth, and the other defendants to dismiss the September 2018 lawsuit.

Eric Krejci, a lawyer for Debt Resolve, Bellmare and Freimuth, declined to comment.

They had argued that Attorney General Letitia James failed to plead facts supporting this allegedly fraudulent debt relief scheme with particu…

Read the full article at: https://www.reuters.com/article/new-york-students-lawsuit/judge-lets-new-york-pursue-student-loan-debt-relief-fraud-case-idUSL2N24414A

Category: Debt HelpBy Insolvency GuardianJuly 3, 2019

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