Debt relief scams often target consumers with student loans

Earning a college degree is an exciting accomplishment, and one that can have a marked impact on an individual’s future success. However, the fruits of student labor are often delayed for several years, as new graduates enter the Connecticut workforce and take entry-level jobs. During those early years, many people rely on credit cards to make ends meet, with the belief that they will soon enjoy increased earnings as they move up the ladder in their chosen field. Unfortunately, that outcome will not go as planned for some, and the need for debt relief will be significant.

Faced with a tightening financial scenario, some borrowers will begin to feel desperate for help. This is when they are most vulnerable to scams, and there are no shortage of companies out there that are ready and willing to take advantage. One such company, known as Strategic Student Solutions, has been closed by the Federal Trade Commission, and the owner will face charges in court for bilking consumers out of their hard-earned cash.

The company promised to assist borrowers in reducing or eliminating their student loan payments. In exchange, consumers were expected to make an upfront payment, as well as monthly payments. Unfortunately, little to no assistance was provided. In fact, some borrowers emerged from their dealings with the company with more debt than they had when they began.

The FTC is continually looking for companies that are not operating in accordance with established laws. When they find scams, they act to shut down those operations, as was the case with Strategic Student Solutions. However, there are always more companies out there that are more than willing to prey on individuals who are in need of serious debt relief. Consumers in Connecticut and elsewhere are urged to do their homework before signing on for any debt relief services.

Source: ksdk.com, “Feds halt alleged student loan debt relief scam“, Kevin McCoy, May 25, 2017