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FTC Bars Businesses From Offering Student Loan Debt Relief Services | Inside Higher Ed - TechiLive.in

FTC Bars Businesses From Offering Student Loan Debt Relief Services | Inside Higher Ed

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The Federal Trade Commission has banned several businesses that falsely promised to relieve student loan debt for clients from providing any debt relief services in the future.

Student Advocates Team LLC, Progress Advocates Group LLC, Student Advocates Groups LLC and Assurance Solutions Services LLC settled a complaint made by the FTC for inaccurately claiming that their services would lower or eliminate student loan payments and for charging illegal up-front fees that customers believed were going toward their loan balances.

As part of the settlement, the businesses are also prohibited from collecting any further payments from customers and are required to pay $11,500 to be used for consumer redress. The order includes a monetary judgment of over $24.5 million, but it has been partially suspended due to an inability to pay.

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