AG obtains refunds for students defrauded by student loan company

Following a legal victory in August, Attorney General Bob Ferguson today announced a $418,000 judgment has been entered against a student loan debt adjusting company that overcharged Washington state students and collected unlawful fees.

StudentLoanProcessing.US (SLP) and its president, Peter Krause, will pay $144,896 to refund its customers for illegal charges and an additional $124,000 for costs, attorney’s fees, monitoring and future enforcement of the Consumer Protection Act. Another $150,000 in penalties will be suspended as long as SLP abides by the terms of the agreement.

All 86 Washington student victims will receive full refunds of the money they paid to SLP. The Attorney General’s Office will distribute the refunds. The Consumer Financial Protection Bureau has an ongoing lawsuit against the company.

“Students graduate from Washington universities with an average of nearly $25,000 in debt,” Ferguson said. “This firm preyed on students who sought their help. I will not tolerate the financial abuse of already overburdened Washington students. I’m pleased this agreement offers a measure of justice for the victims.”