FTC Took Action Against Alleged Student Loan Debt Relief Scam

Business Info

FTC Took Action Against Alleged Student Loan Debt Relief Scam

The Federal Trade Commission (FTC) announced a few months ago that it hadtaken action against a scheme falsely promised student loan debt relief and credit repair andsupposedlytook millions of dollars from consumers. The alleged student loan debt relief scam that bilked over $11 million from consumers nationwide.

Strategic Student Solutions and several related companies promised to reduce or eliminate student loan debt and offered the borrowers credit repair services that didn’t exist in fact. The borrowers had to pay upfront fees and make monthly payments. They allegedly were charged illegal upfront fees as high as $1.200, as well as monthly payments that made up $49.99.

The defendants were David Green and his companies: Strategic Student Solutions LLC, Strategic Credit Solutions LLC, Strategic Debt Solutions LLC, Strategic Doc Prep Solutions LLC, Student Relief Center LLC, and Credit Relief Center LLC.

They were accused by the FTC of violating the Federal Trade Commission Act, the Telemarketing Sales Rule, and the Credit Repair Organizations Act.

Tom Pahl, acting director of the FTC’s Bureau of Consumer Protection notedconsumers who had paid Strategic Student Solutions for help with their student loans saw their situations go from bad to worse. According to Pahl, you should never pay an upfront fee to a company that promises to deliver debt relief.

The student loan document preparation industry is tabbed as high risk. To get a reliable and low-cost student loan doc prep merchant account, it’s critical to turn to a respectable payment processor like eMerchantBroker. EMB is … Read More