Student loan company banned from working in Minnesota after settlement

Photo by: WDAY Radio File (Canva)
Photo by: WDAY Radio File (Canva)

(St. Paul, MN) -- Minnesota's attorney general has reached a settlement with a California-based student debt relief company accused of lying to its customers.  

Attorney General Keith Ellison announced this week that Docupros will pay the state $17,824.69. The money will be distributed to customers in Minnesota who were wrongly told that Docupros could provide student loan forgiveness, which is something only the federal government can do.  The company is also barred from operating in Minnesota until it registers as a debt settlement service provider.

“When companies fraudulently get Minnesotans who are already struggling under crushing student-loan debt to pay them money for fake debt ‘forgiveness,’ I will shut them down,” Attorney General Ellison said. “I encourage any Minnesotan who’s been preyed on by an outfit like this to contact my office so we can hold these bad actors accountable.”

In total, Minnesota's AG Office has declared investigations into 52 student loan companies, with Docupros being the 14th company the office has shut down over fraudulent student loan activity in the state. The office says they have returned over $1.5 million to Minnesota victims of fraud from the student-loan-settlement companies.