FTC shuts down student loan firms over deceptive debt relief practices

The U.S. Federal Trade Commission (FTC) took action against a pair of student loan debt relief companies for allegedly deceiving borrowers. The move came despite the Trump administration’s broader efforts to roll back enforcement actions against businesses since taking office.

Panda Benefit Services and Select Student Services allegedly claimed to be affiliated with the U.S. Department of Education and charged consumers for services they said would result in student loan forgiveness. A federal court, following an FTC lawsuit, permanently banned the companies from the debt relief industry and ordered them to turn over all assets.

“Consumers looking to pay off their student loan debt should not have to worry about being scammed,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a press release. “The FTC will continue to hold fraudsters that pocket Americans’ hard-earned money accountable.”