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Minnesota Attorney General Keith Ellison on Friday announced a settlement in the case against a California-based student-loan debt-relief company accused of illegally collecting fees and misrepresenting its services to customers in Minnesota. 

The AG's office alleges Total Rain, Inc., doing business as Student Aid Groups, falsely promised student-loan forgiveness, when only the federal government can forgive federal student loans. 

The settlement, filed in Ramsey County District Court, requires Student Aid Group to immediately pay the State $15,325 — the full amount it has collected from Minnesota customers — which the Attorney General’s Office will use to provide full restitution to consumers.

“Minnesotans take out student loans in good faith so they can get educations that will help them better afford their lives. My office is showing once again that when companies take advantage of that good faith to rip Minnesotans off, we will come after them," Ellison stated. “I encourage any Minnesotan who’s been preyed upon by this company or others like it to contact my office so we can hold these bad actors accountable.” 

The settlement also bans the company from operating in Minnesota until it registers as a debt-settlement service provider. 

The AG's Office case alleged violations of Minnesota’s Debt Services Settlement Act, Prevention of Consumer Fraud Act and Uniform Deceptive Trade Practices Act.

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