Despite the warning signs, the defendants continued processing consumer payments for the student loan debt relief scheme operator until it was shut down by the FTC.
AFTS and Johnson settled with the Commission. Under the settlement, the defendants agreed to the order permanently prohibiting them from processing payments for debt relief or student loan companies. The defendants also agreed to the order banning them from processing payments indirectly for any merchant that does not have a signed contract with AFTS.
In addition, AFTS and Johnson agreed to implement enhanced screening and monitoring of certain high-risk clients to ensure such clients are not operating illegally.
Furthermore, the order imposed a monetary judgment of $27,584,969, which is largely suspended due to the defendants’ inability to pay. The full amount will be due immediately if found to have misrepresented their financial status. The order required AFTS and Johnson to surrender $500,000 to the FTC for consumer redress.