KGUN9 & BBB: FTC Announces "Game of Loans" to crack down on scammers

If you owe thousands of dollars in student debt the sound of debt reduction sounds good but it appears scammers have been making false promises. Now there is a nationwide crackdown by the FTC. Watch Jennifer Martinez of KGUN 9 On Your Side and BBB share what to look out for!
October 23, 2017

Major crackdown on student loan scammers
KGUN9 Reporter, Jennifer Martinez

Click HERE to watch news segment

TUCSON (KGUN9-TV) - The sound of student debt reduction sounds good to the 42-million Americans paying off their education. Unfortunately, it appears scammers have been making false promises to people paying off their loans.

But now, a nationwide crackdown is to tracking down those scammers. 

The Federal Trade Commission and multiple law enforcement agencies are working together to stop scammers from stealing money from people paying off student loans. 

The initiative, operation "game of Loans" will look into cases that include illegal upfront fees, falsely helping in reducing or forgiving student loan debt burdens and pretending to be affiliated with the government or loan servicers. 

Susann Miller with the Better Business Bureau in Tucson says you should always verify the source and company.

BBB encourages the 42 million Americans with student loans: 

  • If you start falling behind, contact the loan servicer. They have programs to help by reducing your payments. 
  • Advance fees are a red flag. Credit repairs and debt relief companies can only collect their fee after they perform the services promised. 

If you would like to know if you qualify for debt relief or how you can repay debt, click here