The operators of a student loan debt relief scam have agreed to a permanent ban from the debt relief industry and will surrender over $1 million in assets. This decision resolves charges by the Federal Trade Commission (FTC) that accused them of defrauding millions from student loan borrowers.
“It is illegal for debt relief companies to make false promises and use fake reviews and testimonials to promote a business,” stated Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to enforce the law against bad actors.”
In July 2024, the FTC charged two companies, Florida-based Start Connecting LLC and Colombia-based Start Connecting SAS, operating as USA Student Debt Relief (USASDR), along with their owners Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas. The allegations included:
- Pretending affiliation with the Department of Education to attract borrowers.
- Making false promises of low monthly payments and complete loan forgiveness.
- Illegally contacting consumers on the Do Not Call Registry.
- Collecting over $7.3 million in illegal fees for nonexistent services.
- Promoting fake consumer reviews online.
The defendants allegedly promised that consumers' payments would be applied to their loans but instead kept the money, sending much of it to their call center in Colombia.
To settle these charges, a proposed order prohibits them from:
- Misrepresenting affiliations with any entity.
- Falsely promising enrollment in programs with guaranteed low payments or loan forgiveness.
- Charging illegal advance fees.
- Using fake testimonials and reviews online.
- Engaging in unlawful telemarketing or misrepresenting other products or services.
The order imposes a partially suspended monetary judgment of $7.3 million and requires surrendering more than $1 million in assets. If any defendant is found to have misrepresented their finances, they must pay the full monetary judgment immediately.
Resources on avoiding student loan scams are available at ftc.gov/StudentLoans. Free assistance can be found at StudentAid.gov.
The Commission's vote approving this final order was unanimous at 3-0. The proposed order was filed in the U.S. District Court for the Middle District of Florida and becomes law once approved by a judge.
Nathan Nash and D’Laney Gielow from the FTC’s Midwest Region were lead attorneys on this case.
The Federal Trade Commission promotes competition while protecting consumers through education. They advise against transferring money under threats or promises of prizes. More information is available at consumer.ftc.gov, where fraud can also be reported at ReportFraud.ftc.gov.
