Bogus Student Loan Relief Payment Processor Banned

The Federal Trade Commission obtained an order permanently banning a payment processor that facilitated a fraudulent student loan debt relief scheme from processing debt relief payments. The order also requires the company and its owner to surrender $500,000 to the FTC for consumer redress. The FTC’s complaint against Automatic Funds Transfer Services, Inc. (AFTS) and … Read more

Court Rules in FTC’s Favor Against Student Debt Relief Scammers

The U.S. District Court for the Central District of California has ruled in favor of the Federal Trade Commission in a case against the operators of a student loan debt relief scheme. The defendants are banned from telemarketing or providing debt relief services. The court found that the operators, doing business as Federal Direct Group, … Read more

Mission Hills Federal and Others Added to FTC Naughty List Over Student Loan Assistance

The Federal Trade Commission has amended its complaint in a student loan debt relief case, naming an additional defendant who allegedly took part in a scam that bilked more than $23 million from thousands of consumers with false claims that it would service and pay down their student loans. According to the FTC, Labiba Velazquez … Read more