BOSTON – A bill to protect student-loan borrowers from deceptive loan-servicing companies has cleared the state Senate.

Almost two-thirds of undergraduate students in the Bay State finish college with an average of nearly $30,000 of student loan debt. That's a 75 percent increase since 2004.

According to Deirdre Cummings, legislative director with the consumer watchdog group MASSPIRG, some loan-serving companies charge excessive fees, misrepresent products and steer borrowers to more expensive options. But Senate Bill 2380 would hold them accountable.

"Any loan servicer doing business in Massachusetts will now have to be licensed by our own state Division of Banks,” says Cummings. “And then, they can enforce these really strong consumer protection laws we have here in Massachusetts."

The bill passed the Senate by unanimous vote, and now moves to the House for consideration.

SB 2380 would also establish a Student Loan Ombudsman office to review practices, resolve disputes and educate borrowers. And Cummings points out that these protections would not apply only to students.

"We're also seeing a huge increase in older folks in Massachusetts, older than 60, also taking out student loans for their children," says Cummings.

The bill authorizes the attorney general's office to take action against loan-service companies that violate the law.

Cummings adds that when student-loan borrowers become victims of deceptive lenders, it increases the threat to their entire economic future.

"We are going to see problems down the line when people can't fully participate in their communities because they are so strapped with debt," she says.

Similar laws have passed in Connecticut, Illinois and Washington, and have been introduced in a dozen more states.


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MINNEAPOLIS -- With forbearance protections ending during this stage of the pandemic, some struggling homeowners are sorting out their mortgage options, prompting fears scammers will take advantage of unsuspecting borrowers.

Minnesotans are encouraged to instead seek out free assistance programs.

Homeowners affected by the pandemic got relief through initiatives allowing them to pause their monthly payments. But those limits have been reached for many, and aid groups are reporting forbearance scams, including phony offers to extend protections.

Katherine Kelly, assistant Attorney General for Minnesota, fears they will soon hear more about scams, because they may not be evident right away.

"It takes a very long time for that person to realize it was a scam, because they think they can rest easy knowing that they've extended their forbearance, so they're not monitoring things," Kelly explained.

Inattention to detail raises the risk of foreclosure. The Minnesota Homeownership Center said a common scam right now involves dubious offers for a cash purchase of the property. Or, if the borrower is working with their lender on options, hackers might intervene with phony messages demanding immediate payment or a fee.

The Center and other nonprofits provide foreclosure prevention help at no cost.

Julie Gugin, president of the Center, said knowing the situation can be stressful, it is best to secure the help of organizations to guide you through the process without asking for a fee.

"We can help you navigate negotiations with your lender," Gugin pointed out. "We can help you understand your rights, during foreclosure and the process leading up to foreclosure."

And if you do end up deciding to sell, she advised working with a trusted real-estate professional, not an unfamiliar name who might end up taking your money while your past-due bills pile up. Earlier this fall, an estimated 1.5 million U.S. homeowners were in forbearance plans.

PHOENIX -- A new report shows, despite getting billions of dollars from the federal government under the American Rescue Plan, many airlines continue to interrupt travelers' plans with cancellations and are slow to issue refunds.

When the pandemic hit in early 2020, air travel in the U.S. and across the world almost completely stopped. But in recent months, as the airlines begin to add flights, customers are complaining of multiple canceled and delayed flights, denied refunds and customer service failures.

Diane Brown, executive director of the Arizona Public Interest Research Group, which issued the report, called it outrageous the airlines took taxpayer funds but refuse to deal fairly with their customers.

"The airline industry has been short-staffed, and that has caused consumers to have flight cancellations that often have a rippling effect," Brown explained.

Airlines have said their industry was gut-punched by the pandemic, and they are working to get back on track. They blamed air traffic control, inclement weather, computer outages and a lack of available flight crews for stranding or delaying travelers.

And consumers have not been shy about telling the U.S. Department of Transportation just how unhappy they are. Between February 2020 and August 2021, Brown noted the number of complaints about airline service increased 460%. And refunds have been hard to come by.

"Consumers often prefer to just get their money back, to save it for another trip versus having to use the funds by a certain period of time," Brown pointed out.

Brown added travelers need to know their rights and alternatives.

"Consumers do have options when it comes to which airline they choose, which airport they may lay over in, and their ability to contact policymakers and urge better protection," Brown emphasized.

BISMARCK, N.D. -- Over the coming weeks, North Dakotans will be clicking the "purchase" button as they order holiday gifts online, and fraud experts say scammers are finding ways to exploit consumers.

Amy Nofziger, director of fraud victim support for AARP, urged the public to avoid abrupt transactions done with little research, adding fake social-media ads are a big concern this year.

She said as people quickly scroll through online ads, they might not do enough vetting to make sure the company behind a post is real. She added supply chain issues could prompt people to bypass trusted companies through internet searches.

"And they're finding these websites that look legitimate, but they're not," Nofziger observed. "Take the name of the company, put it in a search engine, and do your research. "

When entering the unknown company's name, she suggested typing the words review, scam and complaints to see what pops up. Another common scam right now is getting a message disguised as a warning from well-known delivery companies, indicating something went wrong with a shipment to your address. Experts pointed out the messages often include harmful links.

Parrell Grossman, director of the consumer protection and antitrust division for the North Dakota Attorney General's Office, said they continue to field calls for a variety of scams, including online romance situations where someone loses their money to the person they connected with.

He worries people might be more vulnerable to those scenarios right now.

"When you're lonely at the holidays, it might be the time you decide to engage with someone over the internet," Grossman remarked. "And they can be very convincing, and they will have a myriad of reasons why they need money."

Nofziger emphasized you should never feel ashamed about falling victim to a scam, and taking immediate action is the best approach.

"These are good criminals that are targeting you to steal your money," Nofziger cautioned. "You should be mad, you should be empowered to report it."