The Federal Trade Commission has recently undertaken a sweep of student loan assistance operations. You can read about other raids and takeover of operations here and here.
Student Debt Doctor (SDD) in Fort Lauderdale Florida is the latest target of the FTC enforcement operation. Gary White, Jr is also named in the court documents as the president, manager, and owner of SDD.
The complaint filed says, “Since approximately January 2014, Defendants have operated an unlawful student loan debt relief entem rise that has preyed on consumers’ anxiety in repaying their student loans. Defendants often have promised falsely to reduce or eliminate consumers’ monthly payments and principal balances by enrolling them in repayment or debt forgiveness programs. In many instances, consumers have discovered that Defendants have failed to enroll them in a program or have otherwise have failed to reduce or eliminate their payments or their debt. In some instances, consumers have ended up owing more on their student loans than when they first signed up for Defendants’ services.”
I’ve written about Student Debt Doctor in the past and I’ve been critical of their operation but I’ve also been impressed with the responses I’ve received from Gary White. Gary seemed like a professional person who clearly had something run off the rails.
Maybe this information from the suit filed by the FTC will help to better understand their allegations against Student Debt Doctor.
“Defendants have promised to enroll consumers in student-loan-repayment programs to reduce or eliminate their payments and principal balances. Defendants have made these claims in online advertising, e-mails, and on telemarketing calls. In some instances, consumers view Defendants’ website or online advertising and call Defendants’ telemarketers for more information. In other instances, Defendants’ telemarketers make outbound calls to consumers to offer SDD’S services or convince consumers to sign SDD’S standard contract.”
“Other portions of the studentdebtdoctor.org website also have included
the following statements or promises:
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- “our experts … can consult your personal situation towards loan forgiveness or substantially lower monthly payments”;
- “our clients may typically receive $0 a month payments with a complete loan forgiveness at the end of the programs. This is what is typical with most federal student loans”; and
- “[t]ypically . . . our clients are under a $0/month payment.”
These sorts of blanket states can be very problematic when attempting to roll out a scalable mass market solution.
This marketing line they allegedly used is alarming, “We can .. . solve your student loan problem. 100% guaranteed.”
Secret Exposed
And here is where one of the secrets of student loan assistance gets busted wide open. It’s been a silent fact the reason many student loan assistance companies get low payments is because they “fudge” the facts when completing the paperwork for income reduction qualification. It looks like the FTC finally caught onto this fact.
The complaint says, “Eligibility for these repayment programs generally depends on the consumer’s annual income and family size, as defined and established by federal laws and regulations. Defendants’ claims of eligibility often have been based on false definitions of “family size,” inflated family-size numbers, or inaccurate income claims that, if accurate, would have rendered these consumers ineligible under the applicable laws and regulations for the benefits SDD promised.”
The company and Gary White are alleged to have engaged in deceptive student loan debt relief representations, have violated the Telemarketing Sales Rule regarding advance fees, and made material debt relief misrepresentations.
The FTC has requested the court freeze the assets of the company and asked to have a receiver appointed to most likely wind the company down. The court agreed.
You can read the full FTC suit here against Student Debt Doctor.
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I agree that they helped many. Like any business they failed some. Unfortunately, whenever the banks lose they work the system to their favor; and when you bend/break the rules eventually the government’s agencies will get you. RIP
I am a client of the Student Debt Doctor and they told me that they could have it where I would have to pay nothing minthly for about 36 months then it would be wiped clean and so I had to pay over $700 to then. What can I do about this?
What is the website of the people you are working with? Was it these folks? https://www.ftc.gov/enforcement/cases-proceedings/172-3055/student-debt-doctor-llc
Those claims you say they made smell like what I call bullshit. Sounds like they were telling a big tale in their sales message.
If you want to try and get a refund from the company, then you can follow this https://getoutofdebt.org/30833/what-can-i-do-to-get-a-refund-from-my-debt-relief-company-kristina
Good Luck!
The student debt doctor helped thousands of consumers reduce their student loan payments.The fact is servicers won’t tell students about reducing their loans and income driven programs.Just another way for the ftc to take a good company from helping people.As far as steve the debt guy I heard he uses these blogs to attract leads for his own private debt companies.Thats the problem with the internet its not regulated by the government.Anyone can talk bad about a company what about thousands of student loan borrowers that have been helped by Sdd and other 3rd party companies.H & R block charges monwy before you get your tax return.This courr finding has no merit and Student Debt Doctor is a great company.
john, did the SDD pay off your debt?
Sdd helped thousands of borrowers legitimately,so you close a business thats helping peoole.Funny thing is none of the serbicing companies tell federal student loan borrowers about the income driven programs thats why accountants exist and tax preparers to help people save the most money.I disagree with this court document and allegations.We live in America the problem is the government doesn’t want borrowers to know these programs exist.Why not let a good company continue to help people.I disagree with this document and the Ftc on this.one and I express my1st amendment right here.
SDD utilized illegal robocalls to solicit business. Naughty, naughty!! SDD generated unhappy posts by persons registered on the National Do Not Call Registry, and if memory serves me correctly, one had to spend substantial time on the phone feigning interest in their snake oil in order to learn their true corporate identity.
you are a cunt. you sound like gollum wasting peoples time because they robocalled you? grow a thicker skin
SDD contacted many people on the National Do Not Call Registry via illegal robocalls. Naughty! Naughty!