FTC shuts down Boca Raton-based student loan relief operation

A Boca Raton-based student loan relief operation promised to shorten loan terms and reduce monthly payments, then took borrowers’ money and let them fall deeper into debt, the Federal Trade Commission charged in a lawsuit seeking to permanently close a group of related companies and return victims’ “ill-gotten monies.”

Saying the operation violated federal laws governing telemarketing sales and credit repair services, the FTC obtained a temporary restraining order on May 15 halting its activities and transferring all assets and records to a court-appointed receiver.

The receiver, Charles Lichtman of the Fort Lauderdale-based law firm Berger Singerman, said in an interview Friday that as much as $25 million to $30 million could have been taken in the more than five years he believes the operation has existed.

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