A Franklin Circuit Judge has struck a blow to predatory debt relief peddlers, ordering a Florida-based company to cease operations within Kentucky. The decision was handed down after the company came under investigation for making allegedly misleading claims about college debt forgiveness.
Among the charges leveed are claims that the company promised to work with federal load providers to acquire loan consolidations and other debt relief options, all while seeking large payments from its clients. Whether or not the charges are valid, the company has been barred from operating in Kentucky until it complies with orders to supply documentation verifying its claims.
Not all debt relief options are shady operations, but many companies offering these services are more concerned with gathering substantial fees than reducing their clients’ debt obligations. Generally, companies that approach potential clients with a high-pressure sales pitch, or make seemingly unrealistic promises like instant loan forgiveness should be viewed with great scrutiny. This goes double if a debt relief organization pressures you to give them your Federal Student Aid PIN number, or pressures you to sign over power of attorney to them up front.
If you are looking for help with reducing or consolidating your debt, there are other options beyond a questionable company whose entire business is built on selling you hope that sounds too good to be true. If you are seeking help with debt relief, the assistance of an experienced debt relief attorney can be an excellent place to start, especially one whose practice is diverse and whose track record of experience speaks for itself. A qualified attorney can help counsel you in the best legitimate ways to reduce and consolidate your debt while working directly with the relevant federal agencies. Such an attorney uses the law to your advantage, while ensuring that there are no lenders or third parties taking unfair advantage of you.
Source: WKYT.com, “Judge orders student loan company to stop doing business in Kentucky,” Sep. 27, 2016