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Bankruptcy Law, Credit, Debt Relief, Student Loans

Local Doral Company Sued for Running a Massive Student Loan Debt Scam

Posted on June 2, 2016by Admin

The Federal Trade Commission (FTC) and Florida Attorney General Pam Bondi are suing the Doral-based, Student Aid Center, for illegal business practices in the hopes of recouping some of consumers’ lost money.

The Student Aid Center, which claimed to help graduates relieve themselves of student loan debt, is now facing serious legal trouble of its own. The two owners filed for bankruptcy in February, stating the company had liabilities between $1 million and $10 million.

In addition to the FTC and the State of Florida complaint, Minnesota and the District of Columbia have filed lawsuits accusing Student Aid Center of “deceptive practices.” The Minnesota lawsuit alleges one of the owner’s Instagram account frequently referenced Jordan Belfort, the money-grubbing stockbroker depicted in the Leonardo DiCaprio film The Wolf of Wall Street.) The account has since been taken down.

The owners were savvy marketers, running advertisements on social media, radio spots, Google ads promoting the tagline, “Obama Loan Forgiveness,” and even in one case, an aerial banner flying over South Beach.

The complaint brought by the FTC and the State of Florida says Student Aid Center “preyed on consumers’ anxiety about student loan debt” by falsely promising to reduce or even eliminate it.

The company demanded upfront fees in five monthly installments of $199 or more, according to the complaint- even though graduates can apply for government loan forgiveness programs free of charge. Student Aid Center went as far to tell its customers to stop paying their lenders and instead pay the company directly, the lawsuit alleges.

But although the company lured in customers by promising a 100 percent money-back guarantee, Student Aid Center later deflected those who demanded refunds by either not returning the money or returning an amount much less than what had been paid, according to the FTC.

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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.

Bankruptcy Law, Credit, Debt Relief, Student Loans

Student Debt Relief Scams Targeting Borrowers

Posted on May 31, 2016by Admin

If you are struggling with student loan debt, you’re not alone. The FTC and the State of Florida announced lawsuits against two “alleged” student loan debt relief agencies. Consumer Assistance Project and Student Aid Center promised to get borrowers’ loans forgiven or significantly reduced, according to the FTC.

Consumer Assistance targeted borrowers online and over the phone, claiming they would get relief through government or by disputing loans. Student Aid Center used radio ads, text messages, and featured ads in search results, promoting “Obama Loan Forgiveness.”

But borrowers who paid the companies did not get their loans forgiven or even reduced. At most, the companies got borrowers’ loans put into deferment or forbearance, where loan payments are postponed, but interest still accrues.

Student Aid Center made certain situations worse by telling people to stop contacting their lenders and pay them, instead. Borrowers ended up paying thousands, but did not get the promised relief.

Student loan forgiveness programs are available in very limited circumstances. The FTC has the following new materials to help borrowers:

Student Loan Debt Relief explains how to spot a debt relief scheme, and what people struggling with student loans can do to help themselves.
Maria and Rafael Learn the Signs of a Debt Relief Scam tells the story of a couple trying to repay debt they accumulated for their daughter’s college education. It is the latest in a series of graphic novels to raise awareness about scams targeting Latin communities.
This list shows every company and individual ever banned from providing debt relief and mortgage assistance relief services by an FTC order.

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Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Florida Student Debt Relief Company Files for Chapter 7 Bankruptcy

Posted on February 15, 2016by Admin

A Doral, FL-based student loan debt relief company filed for Chapter 7 bankruptcy this month. The company, Student Aid Center, Inc. estimated between $500,000 and $1 million in assets and 50 to 99 creditors.

Student Aid Center reportedly offered assistance to students dealing with student loan debt. However, a lawsuit filed by the Minnesota Attorney General in July 2015 claimed that the company misled consumers by promising to reduce or eliminate their student loan debt and not producing results.

According to a statement from the Attorney General’s office, the debt relief company promised students that it could immediately qualify them for loan forgiveness with advertisements such as, “Get Your Student Loans Forgiven Now!” and “Say Good-Bye to Student Loan Debt.” The company promoted itself on social media sites and collected upfront fees from borrowers.

After numerous consumer complaints, the company was named in a class action complaint on September 21^st that alleged the company used robo-dialing without obtaining consumer consent.

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