Thousands of Californians eligible for restitution in loan debt relief lawsuit

More than 6,500 people in California are eligible for restitution in a lawsuit over student loan debt relief, with Los Angeles City Attorney Hydee Feldstein Soto announcing Wednesday that her office will be distributing part of $95 million in payments to customers across the country who alleged that Premier Student Loan Center deceived consumers.

The city attorney's office, under former City Attorney Mike Feuer, sued Premier. The states of Minnesota and North Carolina joined in the lawsuit, claiming the company made "deceptive representations" about its student loan debt relief services.

Altogether, 87,285 consumers nationwide were eligible for restitution. California consumers were eligible for a total of $7.1 million.

Premier operated out of Los Angeles and Southern California.

"Student loan debt continues to be a crushing burden for too many Angelenos," Feldstein Soto said. "My office will prosecute these types of claims using every tool at our disposal and continue to help victims get their money back. This announcement is a continuation of the strong consumer protection work that the Los Angeles City Attorney's Office has become known for throughout California and the nation. We will never hesitate to step-in and protect consumers."

The lawsuit is set for trial in the spring, but the plaintiffs were granted an asset freeze and a preliminary injunction along with the restitution.