A lawsuit by the Federal Trade Commission (FTC) has resulted in a fraudulent student loan debt relief operation and its owners being permanently banned from the debt relief industry. They are also required to surrender all assets following allegations of misleading consumers.
"Consumers looking to pay off their student loan debt should not have to worry about being scammed," stated Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. "The FTC will continue to hold fraudsters that pocket Americans’ hard-earned money accountable."
The FTC accused Panda Benefit Services, operating under different names including Prosperity Benefit Services, along with its affiliates and operators, of deceiving consumers with significant student loan debt. The defendants allegedly charged illegal fees for non-existent loan forgiveness services and falsely promised guaranteed loan forgiveness and reduced payments. Additionally, they misrepresented themselves as affiliated with the U.S. Department of Education while collecting unlawful advance fees exceeding $16.7 million.
On May 14, 2025, a stipulated order was entered against Select Student Services and Eduardo Martinez by the court. Previously, on May 6, 2025, at the FTC's request, default judgments were made against Public Processing Services, Quick Start Services, and Signature Processing Services. Stipulated orders were also entered on October 2, 2024, involving Panda Benefit Services and other entities.
These final orders prohibit the defendants from participating in the debt relief industry and telemarketing activities. They are also barred from making false claims about products or services, using deceptive statements to gather financial information from consumers, or impersonating individuals or government bodies.
Furthermore, a monetary judgment amounting to nearly $16.8 million was imposed on Student Services and Martinez. This judgment is mostly suspended due to financial constraints but requires them to hand over substantial personal and business assets. If any misrepresentation regarding their finances is discovered, the full monetary judgment will be enforced immediately.
For those seeking assistance with student loans without falling victim to scams, resources are available at ftc.gov/StudentLoans and StudentAid.gov.
The Commission unanimously approved the stipulated final order concerning Select Student Services and Eduardo Martinez with a vote of 3-0. Similarly approved were orders related to other involved parties with a vote of 5-0 by the Commission in filings made in the U.S. District Court for the Central District of California.
FTC staff attorneys Gregory Ashe and Sally Tieu led this case within the Bureau of Consumer Protection.
The Federal Trade Commission continues its mission to promote competition while safeguarding consumer interests through education initiatives against frauds like these detailed here today.
