Business ProfileforEquitable Acceptance Corporation

BBB files indicate that this business has a pattern of complaints concerning customers signing up for student loan consolidation services with third parties, complainants state they are confused as to how they wind up dealing with Equitable Acceptance Corporation. Equitable Acceptance Corporation purchases contracts from these third party companies and attempts to collect on payments due for services rendered. BBB brought this pattern of complaints to the attention of Equitable Acceptance Corporation. The company acknowledged issues in communicating with students and stated they are trying to fine-tune the transition process from when the loan consolidation services are utilized to when Equitable Acceptance takes over the contract. BBB also expressed concern about some of the third party loan consolidation services the company is working with, as some have F ratings with BBBs out of state. Equitable Acceptance Corporation pledged to work with companies they deal with to urge them to address any outstanding issues with BBB. However, the volume of complaints filed against the business has not decreased. The business was notified of this pattern January 2017, and has not provided a response regarding the pattern of complaints.

On August 7 2019,  the business entered into a Consent Judgement with the Massachusetts Attorney General. The Consent Judgement settles allegations that the business violated the state's Consumer Protection Acy by providing high interest loans to student borrowers looking to finance fees charged by so-called student loan 'debt relief' companies for "documentation preparation services". The AG's office alleges the services involved little more than preparing and submitting forms for the borrowers.  In addition, the AG's office alleges the business violated the Massachusetts Truth in Lending Act by misrepresenting its loans as revolving credit plans, when the loans were actually 'closed end' loans and the business did not disclose the true cost and terms of the loans. Under terms of the Consent Judgement, the business agreed to be permanently banned from making misrepresentations related to financing products or services, is barred from collection on any active student loan debt relief accounts in Massachusetts, requires the business to repair the credit of all affected Massachusetts borrowers and provided for a payment of $100,000 to the Commonwealth of Massachusetts and $340,000 in loan relief to the student borrowers.  For more details go to this link.