A debt buyer has reached a settlement with the Attorney General of Massachusetts in relation to loans that were made to individuals that helped finance the purchase of online study guides and other educational services to students.
The debt buyer — MSW Capital — will discharge $39,000 in loans and provide $1,400 in refunds to individuals who purchased materials from The College Network, Inc., a for-profit company. MSW Capital will also be required to have negative information removed from those individuals’ credit reports, according to the terms of an assurance of discontinuance filed by the AG’s office.
“The College Network repeatedly mislead Massachusetts students and provided inadequate education services at a high cost,” said Massachusetts Attorney General Maura Healey. “With this settlement, more students are receiving the relief they need.”
The College Network was accused of misleading individuals by indicating that the materials that were purchased would aid in the passage of equivalency exams and earn college credits in certain fields, such as nursing and healthcare administration. The College Network went out of business in 2017. Healy has so far secured more than $1.5 million in loan relief for residents of Massachusetts who purchased products from the company, including agreements with two Florida credit unions, We Florida Financial and Southeast Financial Credit Union.