Debt relief scams conned student borrowers out of millions.
The Federal Trade Commission (FTC) has stopped two companies falsely claiming affiliation with the Department of Education and deceiving students regarding loan repayment and forgiveness. Borrowers were told that payments to these companies would count towards their loan principles. The schemes have bilked students out of approximately $12 million using non-existent loan forgiveness and false claims for repayment programs.
“As Americans struggle with massive student loan debt and uncertainty around the prospect of forgiveness, scammers are looking to cash in,” said Samuel Levine, Director of FTC’s Bureau of Consumer Protection. “These lawsuits to shut down student loan debt relief schemes continue the agency’s crackdown on junk fees, unwanted calls, and financial exploitation.”
After the FTC filed complaints, a federal court temporarily stopped the two schemes pending a decision in the case.
As the Lord Leads, Pray with Us…
- For members of the Federal Trade Commission as they seek to prevent the American public from being defrauded.
- For discernment for federal judges as they hear and rule in cases where predatory marketers have scammed consumers.
Sources: Federal Trade Commission
