Defendants in Student Loan Debt Relief Scheme Banned from Industry in Settlement with FTC and Florida

The defendants in two student loan debt relief cases have agreed to settle Federal Trade Commission claims that they charged consumers illegal upfront fees and falsely promised to help reduce or forgive student loan debt burdens. The settlements with Strategic Student Solutions and Bloom Law Group are part of a coordinated federal-state law enforcement initiative [.]

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Benjamin R. Horton is banned from the debt relief business under a settlement with the Federal Trade Commission for his role in a mortgage relief scheme that falsely promised financially distressed homeowners foreclosure prevention and more affordable mortgage payments.

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They’re targeting borrowers with phony student loan debt relief schemes that can make things worse. Today the FTC and the State of florida announced lawsuits against two student loan debt relief schemes – Consumer Assistance Project and Student Aid Center. The FTC also announced a settlement in a case we wrote about earlier this year.

The Federal Trade Commission and the State of Florida have taken action. running phony student loan debt relief schemes, and defendants in a similar FTC. year have agreed to a ban on participating in any debt relief business, student debt relief scheme have agreed to a settlement with the FTC that.

A federal and state crackdown dubbed Operation Game of Loans has targeted companies – including two in Palm Beach County – accused of collecting more than $95 million in student debt-relief scams. “Winter is coming for debt relief scams that prey on hardworking Americans struggling to pay back their student loans,” said Maureen K. Ohlhausen, acting chairman of the Federal Trade Commission.

The Federal Trade Commission is sending more than $5.4 million to nearly 40,000 people who lost money to a student loan debt relief scam. The defendants behind the scam were required to turn over money under a 2018 settlement with the FTC.