FTC Announces New Student Debt Relief Settlements
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Filed under: Student Loans
In big news, the Federal Trade Commission announced a sweeping round of student loan debt relief scam settlements this week as it continues its crusade to crack down on predatory lending activities. The FTC claimed that several student loan debt organizations misrepresented themselves in order to obtain upfront fees while falsely claiming to enroll them in a loan debt forgiveness program.
Operation Game of Loans
Operation Game of Loans was a coordinated FTC and state law enforcement initiative to crack down on predatory student debt relief. Named of course after the hit HBO show, Game of Thrones the federal trade commission went after companies in the student debt relief business who allegedly misrepresented affiliations with Department of Education and engaged in deceptive advertising practices.
Operation Game of Loans, named after the hit HBO Show was launched in 2017. Game of Thrones was a massive initiative of the FTC to bring down companies displaying predatory tactics towards students with loans. It spanned 11 separate states and included 36 legal actions amounting to $95 million.
Student Debt Relief Settlements
The companies named in the FTC’s complaint, as part of the settlement, will be permanently banned from being anyway involved in the selling of debt relief products or services, ensuring that they won’t simply set up shop in a different shape under a different identity. Additionally, the companies will pay a combined total of $5 million in monetary judgments.
Conclusion
Consumers are lucky to have a number of different ways to responsibly handle student loan debt appropriately. Always, however, employ due diligence to committing to a debt relief, debt consolidation, or bankruptcy debt relief option. As many bankruptcy attorneys are also debt relief specialist, contact a Dallas bankruptcy lawyer before agreeing to and debt consolidations. Furthermore, always do your own due diligence when it comes to dealing with an unknown company that cold calls or emails you about debt relief plans.
