FTC Settles over Alleged Student Loan Debt Relief Scam

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  • The FTC settled with Express Enrollment LLC and Intercontinental Solutions LLC, as well as affiliated individuals, to resolve allegations the entities violated the FTC Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, and the Telemarketing Sales Rule by operating a student loan debt relief scam.
  • In the complaint, the FTC alleges that Express Enrollment and Intercontinental Solutions preyed on consumers with student loan debt by promising them lower payments or loan forgiveness. Instead, the entities allegedly pocketed consumers’ monthly loan payments, charged consumers fees for services that are available for free through the U.S. Department of Education, and collected hundreds of dollars per consumer in illegal junk fees.
  • Under the terms of the settlements, Express Enrollment and Intercontinental Solutions and the affiliated individuals are permanently enjoined from doing business in the debt relief industry, and must assist the FTC in providing redress to affected consumers. In addition, they are prohibited from making misrepresentations or unsubstantiated claims in the course of doing business and from making false claims to obtain consumer financial information. The settlements also contain a judgment of $7.4 million, which is largely suspended due to inability to pay.
  • We previously covered the FTC’s lawsuits against two other allegedly phony student debt relief programs in May 2023.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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