A federal court freezes assets in the agency’s first case under the Impersonation Rule.
The Federal Trade Commission (FTC) has taken action against a student loan debt relief scam that defrauded consumers of over $20.3 million. The scheme contacted borrowers claiming an affiliation with the Department of Education, misleading consumers into paying exorbitant amounts for non-existent loan forgiveness.
“These defendants promised to lower student loan payments, but then took millions of dollars from consumers and did nothing, leaving them in deeper debt,” said FTC’s Bureau of Consumer Protection Director Samuel Levine. “The FTC will continue taking decisive action against those who exploit Americans struggling with student debt.”
The FTC’s complaint alleges the entities falsely guaranteed loan forgiveness and claimed to take over the servicing of student loans. Misleading mailers and telemarketing tactics were used to convince borrowers to enroll in their program, only to discover later that no loan forgiveness had been obtained. The Impersonation Rule, effective since April 1, strengthens the agency’s ability to address such fraud and seek restitution for affected consumers.
As the Lord Leads, Pray with Us…
- For Director Levine to be discerning as he heads the FTC’s Bureau of Consumer Protection.
- For Chair Lina Khan and members of the FTC as they work to prevent consumers from being defrauded.
Sources: Federal Trade Commission
