Furthermore, the Court found that the defendants charged consumers illegal upfront fees — hundreds to thousands of dollars. The defendants also accessed consumers’ student loan credentials and changed their contact information. As a result, loan servicers were unable to communicate with consumers.
Through their improper business practices, the defendants violated the FTC Act and the Telemarketing Sales Rule.
Judge orders student debt relief scam operators to pay $27.6 million
In his ruling, U.S. District Judge James Selna permanently prohibited the defendants from advertising, marketing, promoting, offering, or selling any secured or unsecured debt relief products or services. They are also forbidden to assist others in doing similar practices.
In addition, Judge Selna permanently banned the defendants from engaging or helping others in telemarketing. He also prohibited them from misrepresenting and making false claims regarding financial products and services.
Moreover, Judge Selna ordered a monetary judgment of $27.6 million against the student debt relief scam operators.
