The operators of an alleged transnational student loan debt relief scam have agreed to be permanently banned from the debt relief industry and to turn over more than $1 million in assets to resolve Federal Trade Commission charges that the operation bilked millions out of struggling student loan borrowers.
“It is illegal for debt relief companies to make false promises and use fake reviews and testimonials to promote a business,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to enforce the law against bad actors.”
In July 2024, the FTC alleged that two companies, Florida-based Start Connecting LLC and Colombia-based Start Connecting SAS (doing business as USA Student Debt Relief (USASDR), and their owners and operators Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas:
- pretended to be affiliated with the Department of Education and its loan servicers to lure student loan borrowers seeking debt relief;
- made false promises of low, permanently fixed monthly payments and complete loan forgiveness;
- illegally called tens of thousands of consumers on the Do Not Call Registry;
- extracted more than $7.3 million in illegal advance fees and payments for nonexistent debt relief services; and
- promoted fake consumer reviews and testimonials on social media and their website.
The defendants falsely promised to apply consumers’ monthly payments to their loan balances, but in reality, they pocketed borrowers’ hard-earned money and sent much of the funds to their call center in Colombia.
To settle the FTC’s charges, the proposed order prohibits the settling defendants from:
- misrepresenting affiliation with any person, corporation, or government entity;
- falsely promising to enroll consumers in programs that guarantee permanent low, fixed monthly payments and lump-sum loan forgiveness of remaining balance;
- charging consumers illegal advance fees;
- falsely marketing their services with fake testimonials and reviews online;
- engaging in debt relief activities and unlawful telemarketing and making any misrepresentations about other products or services.
The proposed order also imposes a partially suspended monetary judgment of $7.3 million and requires the settling defendants to turn over more than $1 million in personal and business assets. If any of the settling defendants are found to have materially misrepresented their finances, the full amount of the monetary judgment would become immediately due from that defendant.
The FTC has resources on how to avoid student loan debt relief scams at ftc.gov/StudentLoans. Consumers can get assistance with their student loans for free at StudentAid.gov.
The Commission vote approving the stipulated final order was 3-0. The FTC filed the proposed order in the U.S. District Court for the Middle District of Florida. Stipulated final orders have the force of law when approved and signed by the District Court Judge.
The lead staff attorneys on this matter were Nathan Nash and D’Laney Gielow of the FTC’s Midwest Region.