The L.A. City Attorney's Office filed a lawsuit against Premier Student Loan Center, claiming Premier made "deceptive representations" about its debt relief services.
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City Attorney Hydee Feldstein Soto's office, under former City Attorney Mike Feuer, sued Premier. The states of Minnesota and North Carolina joined in the lawsuit.
Altogether, 87,285 consumers nationwide are eligible for restitution. California consumers are eligible for a total of $7.1 million.
"Student loan debt continues to be a crushing burden for too many Angelenos,'' Feldstein Soto said. "My office will prosecute these types of claims using every tool at our disposal and continue to help victims get their money back. This announcement is a continuation of the strong consumer protection work that the Los Angeles City Attorney's Office has become known for throughout California and the nation. We will never hesitate to step-in and protect consumers.''
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Premier operated out of Los Angeles and Southern California. The lawsuit will go to trial in the spring.
City News Service contributed to this report.
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