A federal court has shut down a phony student loan debt relief and credit repair company that was operating in Lake Worth, Delray Beach, Boca Raton and Las Vegas. The FTC charged its operators with scamming millions of dollars from consumers by falsely promising to reduce- even eliminate their student loan debt.
The owner of Strategic Student Solutions and related entities used corporate funds to pay for personal expenses, including: jewelry, casino tabs, mortgage payments, luxury vehicles, clothing and the construction of a pool, according to the FTC.
The U.S. District Court for the Southern District of Florida has halted the company’s operations and seeks to permanently stop the alleged illegal practices and refund consumers. Borrowers, who trusted Strategic Student Solutions, watched their student loan debt go from bad to worse.
The operators of Strategic Student Solutions lured student loan borrowers with promises such as, “Payments as low as $0 monthly” and “Save 60 percent or more on your monthly payments.”
However, consumers discovered the defendants failed to enroll them in any loan forgiveness or payment reduction plans, and found out none of their monthly payments were applied to their student loan debt.
The company falsely represented that they would provide credit repair services and improve consumers’ credit scores. Instead, they charged consumers illegal fees of up to $1,200 and monthly payments of $49.99.
The bottom line: Never pay an up-front fee to a company promising to deliver debt relief. Through deceptive marketing practices, this company and others like them, claim to offer borrowers the opportunity to get them out of debt, consolidate their loans and lower their monthly payments for a fee. It is important that borrowers know, these same services are offered by the Department of Education — for free. Borrowers looking to reduce their monthly student loan payments should contact the Department of Education for official guidance.
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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.