A student loan debt forgiveness company has been ordered to stop doing business by a South Florida federal court. The court issued a temporary injunction against Student Debt Doctor and its president, Gary Brent White Jr., and froze all assets of the corporation.
The Federal Trade Commission (FTC) has accused Student Debt Doctor and White of violating federal trade and telemarketing laws by promising to reduce or eliminate student loan debt for an upfront fee.
The FTC filed its complaint Oct. 2 seeking an injunction as well as financial relief for the victims. The defendants operated an unlawful student loan debt relief business since January 2014, preying on borrowers’ anxiety in repaying their loans, according to the complaint.
“Defendants often have promised falsely to reduce or eliminate consumers’ monthly payments and principal balances by enrolling them in repayment or debt-forgiveness programs,” the complaint said.
The consumers who signed up for the services discovered that Student Debt Doctor failed to enroll them in a program or reduce or eliminate their debt, even after charging an upfront fee of $750, according to the complaint. Telemarketers promised borrowers enrolled in the program student loan debt forgiveness in five years or less.
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