Defendants in Student Loan Debt Relief Scheme Banned from Industry in Settlement with FTC and Florida

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FTC Disconnects Pointbreak Media Robocall Scheme Defendants;. Defendants in student loan debt relief Scheme Banned from Industry in Settlement with FTC and Florida.

The settlements stem from an FTC-led enforcement sweep announced last year The defendants in two student loan debt relief cases have agreed to settle Federal Trade Commission claims that they charged consumers illegal upfront fees and falsely promised to help reduce or forgive student loan debt burdens.

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The defendants behind a New york-based debt collection scheme will be permanently banned from the debt collection industry under a settlement with the Federal Trade Commission and the New York Attorney General, who alleged that the defendants bilked consumers out of millions of dollars by brokering.

At the Federal Trade Commission’s request, a U.S. district court in Florida granted summary judgment against two individuals, approved six settlement agreements involving 11 defendants, and entered a default judgment against the remaining seven defendants, officially ending the massive Pointbreak Media robocall scheme.

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The operators of two Florida-based student loan debt relief schemes are banned from the debt relief business as part of agreements settling Federal Trade Commission allegations that they collected illegal upfront fees and falsely promised to help some consumers enroll in government programs that would reduce or forgive their student loan debt, according to a news release from the FTC.

Under a settlement with the Federal Trade Commission and the State of Florida, the operators of an alleged student debt relief and credit repair scam will be banned from those lines of business. Defendants in Student Loan Debt Relief Scheme Banned from Industry in Settlement with FTC and Florida | Federal Trade Commission

Whether these recent losses cause the SEC to revisit its interest in trying tough cases, or possibly embolden defendants, remains to be seen.