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Permanent Ban from Debt Relief, Telemarketing for Operators of Debt Relief Scam

In November 2022, the Federal Trade Commission (FTC) charged Sean Austin, John Steven Huffman, John Preston Thompson, and their affiliated companies with deceiving consumers by falsely promising to eliminate or substantially reduce their credit card debt. The FTC alleged that the defendants took tens of millions of dollars from people through their deceptive debt relief …

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FTC Stops Student Loan Debt Relief Schemes that it Says Bilked Students Out of Millions

Stop

The Federal Trade Commission has stopped a pair of student loan debt relief schemes that it says bilked students out of approximately $12 million by using deceptive claims about repayment programs and loan forgiveness that did not exist. The agency also says the companies falsely claimed to be or be affiliated with the Department of Education …

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DOE wants to modernize the student loan program but mucks up the planning process

DOE wants to modernize the student loan program but mucks up the planning process

Like a repentant boozer who promises to give up drinking, the Department of Education pledged to modernize its neanderthal student loan program. Unfortunately, like a chronic drunk, DOE simply can’t clean up its act. DOE’s own Inspector General audited the Department’s modernization efforts and issued a report last week.  The audit concluded that DOE bungled its modernization …

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Student Debt Doctor Scam Returns Money to Victims

Student Debt Doctor Scam Returns Money to Victims

The Federal Trade Commission is sending 22,817 checks totaling more than $2 million to borrowers who lost money to a student loan debt-relief scam that operated under the names Student Debt Doctor. Consumers who receive checks should cash them within 90 days, as indicated on the check. Recipients who have questions about their refund should …

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Student Loan Assistance Groups Hit With Millions in Judgments

In January of 2020 the Consumer Financial Protection Bureau (CFPB) went after Chou Team Realty, Monster Loans, MonsterLoans, Lend Tech Loans, Docu Prep Center, DocuPrep Center, Certified Document Center, Document Preparation Services, Certified Doc Prep, Certified Doc Prep Services, Assure Direct Services, Direct Document Solutions, Secure Preparation Services, Docs Done Right, Bilal Abdelfattah, Belal Abdelfattah, …

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CFPB Hits Unlawful Student Loan Debt-Relief Scheme

The Consumer Financial Protection Bureau (CFPB) today sued a student loan debt relief company, its owner, and manager for allegedly charging thousands of consumers more than $3.5 million in illegal upfront fees. The lawsuit filed in federal district court accuses California-based Student Loan Pro, Judith Noh, and Syed Gilani of violating the Telemarketing Sales Rule …

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Are the Scammers Now Getting Scammed?

American Financial Support Services was shutdown for bad acts by the Federal Trade Commission. They were raided as a result of student loan assistance services they were selling. The allegations made were disturbing but consumers appear to be getting kicked twice. The court-appointed receiver in the case just announced the following: “The Receiver’s office received …

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You Thought it Was Over. It’s Not Over with CFPB and Student Loan Assistance Players.

Boys look ready to rumble in this vintage photograph.

Back in May the Consumer Financial Protection Bureau (CFPB) entered a stipulated final judgment and order against Defendant Chou Team Realty, LLC, Defendants and Relief Defendants Thomas Chou and Sean Cowell, and Relief Defendants TDK Enterprises, LLC and Cre8labs, Inc., which resolved the Bureau’s claims against them. On July 7, 2020, the Court entered a …

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