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Attorney General Weiser announces settlement with dissolved debt management servicer

The settlement will provide full restitution to 167 Colorado consumers
Community Submission
AP20352664252235
In this Oct. 7, 2019, file photo, Colorado Attorney General Phil Weiser speaks during a news conference in Denver. A group of 35 states as well as the District of Columbia and the territories of Guam and Puerto Rico filed an anti-trust lawsuit against Google on Thursday alleging that the search giant has an illegal monopoly over the online search market that hurts consumers and advertisers. (AP Photo/David Zalubowski, File)

NEWS RELEASE
COLORADO ATTORNEY GENERAL PHIL WEISER
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Attorney General Phil Weiser announced that Cornerstone Doc. Prep. LLC, a dissolved and unregistered debt management servicer in Colorado, will provide full restitution to 167 Colorado consumers after the company used deceptive marketing practices to seemingly guarantee substantial student loan forgiveness.

Along with more than $128,000 in restitution payments, the settlement also states that Cornerstone and the company’s director Eric Caldwell will be prohibited from engaging in debt management services in Colorado. The settlement is subject to approval from the Denver District Court.

“For many of our young people, pursuing higher education can often come with a daunting financial decision that has life-long impacts,” Weiser said. “Cornerstone’s advertisements were misleading and posed a risk to vulnerable Colorado consumers and students. We are committed to holding fully accountable any company that preys on or takes advantages of students pursuing higher education.”

To date, under Weiser’s leadership the Colorado Department of Law has delivered more than $190 million in refunds and debt cancellation for student loan borrowers.

Student loan borrowers should beware of debt relief scams. Scams may increase as federal student loan return to repayment in October. To prepare for repayment, borrowers should:

  1. Identify their student loan servicer(s) by logging into their studentaid.gov account.
  2. Make sure their contact information is up to date with the loan servicer and Federal Student Aid.
  3. Contact their loan servicer with questions or concerns.
  4. Contact their servicer to determine what their upcoming repayment amount will be. If that amount is not affordable, they should discuss alternatives such as an Income-Driven Repayment plans with their servicer.

The Colorado Student Loan Servicers Act created a student loan ombudsperson in the Department of Law as a resource for student loan borrowers throughout the state. The ombudsperson is responsible for receiving, reviewing, and attempting to resolve complaints from student loan borrowers. Borrowers struggling with their student loans can click here to file a complaint with the student loan ombudsperson.

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