Student Loan Debt Relief Companies Agree to Settle FTC Charges They Falsely Promised to Lower or Eliminate Consumers’ Student Loans – FTC
Defendants allegedly charged illegal upfront fees and failed to disclose they paid consumers for positive BBB reviews
Three California-based student loan debt relief companies and their owner have agreed to be permanently banned from the debt relief business in order to settle Federal Trade Commission charges that they falsely promised to lower or eliminate consumers’ student loans in return for an illegal upfront fee.
The FTC also alleged that the companies and their owner, Adam Owens, failed to disclose that they paid consumers for positive Better Business Bureau (BBB) reviews.
“These companies promised people that they could get their student loans forgiven, which was more than they could deliver,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “To learn what relief you might be able to get to repay your federal student loans, go to StudentAid.gov/repay.”
According to the FTC’s complaint, SLAC (which also uses the name Aspyre), Navloan, Student Loan Assistance Center, and Owens told consumers that, for an upfront fee of $699 and a monthly fee of $39, the defendants would permanently lower or eliminate consumers’ student loans. In reality, consumers’ payments could change every year, and loan forgiveness is not guaranteed for any consumer.