On May 31, the Federal Trade Commission (FTC) announced that it settled claims against a student loan debt relief company as part of a coordinated federal-state enforcement initiative to target deceptive student loan debt relief scam called “Game of Loans.”
The FTC settled allegations that a student loan debt relief company violated the FTC Act, Telemarketing Sales Rule, and Credit Repair Organizations Act by allegedly charging unlawful advance fees and making false promises to enroll consumers in loan forgiveness programs and provide credit repair services.
The defendants agreed, in a stipulated order filed in the U.S. District Court for the Southern District of Florida, to cease debt relief and credit repair activities, and stipulated to a monetary judgment of over $17.7 million. After defendants forfeit substantially all of their assets, estimated to be $4 million, the judgment will be partially suspended.
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