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ARTICLE · 29 JULY 2024

FTC's Shuts Down Operators Of Debt Relief Enterprise

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On July 11, the Federal District Court for the Middle District of Florida granted the FTC's request for a temporary restraining order against operators of a debt relief enterprise that unlawfully charged consumers...

United StatesConsumer Protection
A.J. Dhaliwal
A.J. Dhaliwal
Mehul Madia
Mehul Madia
Moriah Dworkin
Moriah Dworkin
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On July 11, the Federal District Court for the Middle District of Florida granted the FTC's request for a temporary restraining order against operators of a debt relief enterprise that unlawfully charged consumers illegal advance fees.

In the FTC's July 9 complaint, the Commission alleges that the company and its owners falsely promised to enroll consumers in programs that guaranteed low monthly loan repayments followed by a lump-sum loan forgiveness. In exchange for enrollment in their program, the operators charged consumers advance fees of several hundred dollars followed by monthly fees of as much as $29. The FTC alleges that while the company stated it would apply consumers' monthly payments to their loan balances, in reality it kept the consumers' money and moved it offshore. As part of their scheme, the defendants falsely claimed that they were affiliated with the Department of Education.

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