Los Angeles, CA

L.A. residents are eligible for restitution in new loan debt relief lawsuit

Josue Torres

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In a new lawsuit over student loan debt relief, L.A. residents among thousands of people in California are eligible for restitution. Los Angeles City Attorney Hydee Feldstein Soto recently announced that her office will distribute a portion of $95 million in payments to consumers across the nation who used the services of Premier Student Loan Center.

Feldstein Soto is the 43rd Los Angeles City Attorney, elected in November 2022 and sworn into office in December 2022.

Under former City Attorney Mike Feuer, the city attorney’s office filed a lawsuit against Premier. The complaint was joined by other states in the country, and all of them claimed the defendant made deceptive statements on the nature of its student loan debt relief services.

Nationwide, 87,285 customers qualified for reparations. Consumers in California qualified for a total of $7.1 million. Premier operated out of Southern California and Los Angeles.

According to Feldstein Soto, for far too many Angelenos, student loan debt remains a crippling burden. She says her office will continue to assist victims in getting their money back while pursuing these claims with every tool at their disposal. 

The Los Angeles City Attorney’s Office has built a reputation for vigorous consumer protection work both inside California and throughout the country, and they say this announcement is a continuation of that effort. 

Feldstein Soto said California residents should know the Attorney’s Office will never hesitate to intervene on behalf of the people to safeguard their best interests.

Although the trial for the claim is scheduled for the spring, the plaintiffs also received a preliminary injunction and an asset freeze.

More than 6,500 people in California are expected to benefit from the case.

Redress checks from the CFPB have already begun to be sent to consumers who were affected. Borrowers do not have to go through a claims process. Those who have any queries concerning payments for consumers can contact RUST Consulting at premier_info@rustcfpbconsumerprotection.org or (833) 539–2839.

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