News & Analysis as of

Debt-Relief Industry Fraud

Ballard Spahr LLP

FTC takes action against Accelerated Debt for running a debt relief scam

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An ex parte temporary restraining order has been issued against the participants in a debt relief services scheme that allegedly targeted seniors, including veterans, using a variety of deceptive practices, including falsely...more

Troutman Pepper Locke

FTC Obtains Order Against Accelerated Debt for Allegedly Deceptive Practices Targeting Elderly and Veterans

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On July 14, the Federal Trade Commission (FTC) secured a court order aimed at halting allegedly deceptive practices against seven companies and three individuals operating the “Accelerated Debt” program. The defendants...more

Sheppard Mullin Richter & Hampton LLP

FTC Cracks Down on Payments Processor for Facilitating Fraud

On May 1, the FTC announced a settlement in federal court in the Northern District of Georgia against a payment processing company, along with its former CEO and senior vice president, for the company’s role in handling...more

Wiley Rein LLP

Wiley Consumer Protection Download (February 27, 2024)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Shipkevich PLLC

CFPB and State AGs Prosecute Debt Relief Companies and Law Firms

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In recent weeks, we have seen an increase in prosecution by the Consumer Financial Protection Bureau (“CFPB”) and state attorneys general against debt relief companies and law firms. Additionally, the focus on these debt...more

Shipkevich PLLC

Minnesota’s AG Raids Student-Loan Debt-Relief Industry Operating Within the State

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On September 6, 2023, the Minnesota Attorney General’s Office (“Minnesota”) announced that it has begun investigating the operations of more than 50 student-loan debt-relief companies suspected of violating consumer...more

Sheppard Mullin Richter & Hampton LLP

CFPB, FTC Continue Crack Down on Debt Relief Schemes

On May 5, the CFPB announced that it has sent payments totaling more than $22 million to approximately 6,500 individuals who were harmed by a Maryland-based debt-relief and credit-repair company that marketed and sold...more

Shipkevich PLLC

FTC Obtains Multiple Orders Banning Credit Card Debt Relief Scheme as Alleged in the Lawsuit

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On April 28, 2023, the Federal Trade Commission (FTC) obtains multiple orders banning operators of an alleged credit card debt relief scheme based in Tennessee, who agreed to the court orders which permanently ban them from...more

Goodwin

FTC Reaches $500,000 Settlement with Payment Processor for Its Role in Alleged Student Loan Debt Relief Scheme

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On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade...more

Goodwin

FTC Distributes $1.7 Million to Affected Consumers in Alleged Student Loan Debt Relief Scam

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On February 10, 2021, the Federal Trade Commission (FTC) announced that it will begin distributing over $1.7 million to consumers that it claims lost money as a result of an alleged student loan debt relief scheme. The...more

Goodwin

FTC Secures $19.4 Million in Judgments Over Mortgage Relief Scheme

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On January 11, 2017, the Federal Trade Commission (FTC) announced that it had agreed to two stipulated orders with individuals who participated in an alleged fraudulent mortgage relief scheme. According to the FTC, the...more

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