Consumer Finance Insights
June 6, 2018

FTC Settles Claims Against Student Loan Debt Relief Company for Over $17.7 Million

​On May 31, the Federal Trade Commission (FTC) announced that it settled claims against a loan debt relief company in connection with its coordinated federal-state enforcement initiative to target deceptive student loan debt relief scams, called “Game of Loans.”

The FTC settled claims that the company violated the FTC Act, Telemarketing Sales Rule, and Credit Repair Organizations Act.  The company allegedly participated in a debt relief operation that preyed on consumers with student loan debt by claiming to be associated with the Department of Education and offering loan forgiveness programs.

Defendants agreed, in a stipulated order filed in the U.S. District Court for the Central District of California, to cease debt relief and telemarketing activities and to cease making misrepresentations or unsubstantiated claims related to financial or other products or services.  The settlement also includes a monetary judgment of over $9 million.  After the defendants turn over all of their assets, estimated to be $54,000, the judgment will be partially suspended.