- Associated Press - Tuesday, April 7, 2015

SEATTLE (AP) - Washington Attorney General Bob Ferguson has filed a lawsuit against a student loan processing company, accusing the firm of exploiting student loan borrowers for profit.

The lawsuit filed Monday says StudentLoanProcessing.US and its president, James Krause, violated Washington’s Debt Adjusting Act and Consumer Protection Act. It says the company charged illegally high fees and failed to inform customers of their rights.

Ferguson says StudentLoanProcessing.US charged its customers at least $250 to help them apply for federal loan repayment programs and loan consolidation. Washington law limits such initial fees to $25.

A total of 88 Washington consumers, with an average student loan debt of approximately $58,000, used the company’s services. Ferguson says the company collected about $132,000 in fees from these consumers.

An email to the company seeking comment on the lawsuit was not immediately returned on Tuesday afternoon.



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