Nationwide FTC crackdown underway
Texas Attorney General Ken Paxton on Friday announced that his office filed an action against Jason Spencer, the operator of an alleged student loan debt relief scam called Student Loan Relief, LLC. Spencer allegedly engaged in false, misleading or deceptive practices in violation of the Texas Deceptive Trade Practices Act and Texas Finance Code, including providing unauthorized services, falsely advertising online, and charging premature or unauthorized fees.
This lawsuit is part of a national crackdown, “Operation Game of Loans” announced today in partnership with the Federal Trade Commission and state attorneys general across the country. Operation Game of Loans is the first state-federal law enforcement initiative targeting student loan debt relief scams that falsely promise to help reduce or forgive student loan debt burdens, and pretend to be affiliated with the government or consumers’ loan servicers. The announcement includes more than 30 actions by the FTC and state attorneys general.
“This crackdown holds scammers accountable for their abusive practices, and will protect hardworking Texans as they pay back their student loans,” Attorney General Paxton said. “Students are among Texas’ most valuable resources, and my office will not allow deceptive loan relief companies to take advantage of their aspirations to further their education.”
For information about how to avoid falling victim to these scams, visit ftc.gov/StudentLoans or texasattorneygeneral.gov/cpd/
Consumers should remember that only scammers promise fast loan forgiveness, and consumers should never pay an upfront fee for help or share their Federal Student Aid ID with anyone.
Consumers can apply for loan deferments, forbearance, repayment, and forgiveness or discharge programs directly through the U.S. Department of Education or their loan servicer at no cost; these programs do not require the assistance of a third-party company or payment of application fees. For federal student loan repayment options, visit StudentAid.gov. For private student loans, contact the loan servicer directly.
To view a copy of the petition filed in Texas, click here: http://bit.ly/2y9rZny