In a recent crackdown on deceptive marketing in the debt relief industry, the Federal Trade Commission (FTC) has settled with SL Finance LLC and its owners, along with BCO Consulting Services Inc. and SLA Consulting Services Inc. and their owners. The entities were alleged to have contravened the FTC Act, the Telemarketing Sales Rule, the COVID-19 Consumer Protection Act, and the Gramm-Leach-Bliley Act. The allegations stemmed from their underhanded approach of selling student debt relief services.
This decision arrives amidst a rippling wave of consumer protection maneuvers from the federal agency in response to a growing number of deceptive marketing and fraud incidents related to student debt relief services, particularly under the pivotal circumstances defined by the COVID-19 pandemic.
Without delving into the particulars of the settlement, it is safe to say a clear message is being signaled by the FTC — the agency is not taking violations of consumer protection laws lightly, and alleged scammers in the debt relief industry bear the brunt of this enforcement push. For the corporations and law firms navigating this landscape, compliance with the ever-evolving legal implications has become more crucial than ever.
For further reading, please find the details of the settlement on the JDSupra website.