The scheme made fraudulent promises of loan forgiveness, for which the agency imposed an industry ban and asset forfeiture.
The Federal Trade Commission (FTC) has reached a settlement with the leader of a fraudulent student loan debt relief operation, who will face a permanent ban from the industry and asset forfeiture. The agreement resolved charges related to the scheme, in which the leader and others misrepresented affiliation with the U.S. Department of Education—enticing student borrowers with false promises of loan forgiveness under names like “Biden Loan Forgiveness.”
The FTC found that the operators of Express Enrollment, LLC, and Intercontinental Solutions, LLC, amassed approximately $8.8 million in illicit fees.
Two months ago, the FTC settled with co-defendants and the corporate entities involved, imposing similar penalties. The FTC provides advice to consumers on avoiding such scams through its resources at its website, while also providing free assistance for managing student loans online at the Federal Student Aid site.
As the Lord Leads, Pray with Us…
- For FTC chair Lina Khan and the rest of the commissioners to receive God’s wisdom in their efforts to protect consumers from frauds and scammers.
- For COO Richard Cordray and Secretary Cardona as they collaborate on federal student loan assistance.
Sources: Federal Trade Commission
