Another student loan debt relief scheme shut down!

Some student loan debt relief companies will lie and say they’re affiliated with the Department of Education when they’re not. They want their bogus claims of “guaranteed” loan forgiveness (for a fee) to seem more legitimate (they’re not).

And that’s what the FTC says Prosperity Benefit Services did when it sent out mailers promoting “complete” student loan forgiveness. If you called, telemarketers would try to convince you to enroll in one of the company’s programs by telling you it was affiliated with the Department of Education (they weren’t) and claiming it would make you eligible for quick loan forgiveness (they wouldn’t).

To sign up, Prosperity Benefit Services asked for an (illegal) upfront fee, your FSA account data, and your signature to get you started on a monthly payment plan. What services would you get? Usually nothing. In the rare case it did submit your application, it was for free federal repayment programs you could've signed up for yourself.

Some student loan debt relief companies are scammers. Here are red flags to watch out for:

Scammers use official-looking names, seals, and logos to make them seem more legit. Make sure you’re working with a federal student loan servicer that’s listed on the Department of Education’s website. (And use the contact information listed there too — scammers can spoof the numbers and names of legit servicers.)
Scammers charge an upfront fee. It’s illegal for companies to charge you before they help reduce or get rid of your student loan debt.
Scammers say they need your FSA ID login information. Never give out this information. If a scammer gets your FSA ID, they could cut you off from your loan servicer — or even steal your identity.

More Than $5 Million in Refunds to Consumers Harmed by Bogus Credit Repair Scheme

The Federal Trade Commission is sending more than $5 million in refunds to consumers harmed by a deceptive credit card debt relief scheme known as ACRO Services. The FTC filed a lawsuit in November 2022 against ACRO Services, which operated under multiple names such as American Consumer Rights Organization, Consumer Protection Resources, Reliance Solutions, Thacker & Associates, and Tri Star Consumer Group. The complaint charged the company and its owners with running a deceptive telemarketing operation that made numerous phony debt relief promises to consumers, including that they could greatly reduce or eliminate consumers’ credit card debt in 12 to 18 months. They charged consumers thousands of dollars in unlawful upfront enrollment fees and told them it was part of the debt that will be eliminated as part of the program. Consumers were also charged monthly fees ranging from $20-$35 for “credit monitoring” services. The individual defendants agreed to a se...

Williams-Sonoma Will Pay Record $3.17 Million Civil Penalty for Deceptive use of Made in the USA

Home products company Williams-Sonoma will be required to pay a record civil penalty of $3.175 million for violating a 2020 Federal Trade Commission order requiring the retailer to tell the truth about whether the products it sells are Made in USA. In a complaint filed by the Department of Justice upon notification and referral from the FTC, the agency charges that Williams-Sonoma listed multiple products for sale as being “Made in USA” when in fact they were made in China and other countries. The company has agreed to a settlement that requires them to pay the civil penalty, which is the largest ever in a Made in USA case. “Williams-Sonoma claimed its products were made in the United States even though they were made in China,” said FTC Chair Lina M. Khan. “Williams-Sonoma’s deception misled consumers and harmed honest American businesses. Today’s record-setting civil penalty makes clear that firms committing Made-in-USA fraud will not get a free pass.”...

Adobe used hidden fee to trap people into paying for subscription plans

Maybe you want to try out a product for a little while before you make a long-term decision. So, you sign up for a monthly subscription plan. Everything is fine until you want to cancel and it turns out to be a yearly subscription with monthly payments. Surprise! That’s what the FTC says happened to people who signed up for monthly subscriptions with Adobe. When people signed up on Adobe’s website for access to its software, the FTC says Adobe pre-selected the option for its “annual paid monthly” plan that put subscribers on the hook for a whole year of payments, paid in monthly increments — a fact that Adobe failed to explain or properly disclose. The lawsuit says Adobe used similar tactics when people signed up for a free trial and didn’t cancel before the trial ended. Adobe automatically placed them on the “annual paid monthly” plan without making it clear they were entering a one-year contract. When people tried to cancel before the year was up, they had to pay a hefty early te...

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