A transnational operation of alleged student debt relief has come under scrutiny by the Federal Trade Commission. The individuals responsible have accepted a permanent ban from operating in the sector and will surrender over one million dollars in assets to settle the lawsuit filed by the U.S. agency.
Fake affiliations and broken promises
According to the FTC, the two companies involved — Start Connecting LLC based in Florida and Start Connecting SAS based in Colombia — operated under the name USA Student Debt Relief (USASDR). They allegedly pretended to have an official affiliation with the U.S. Department of Education to lure indebted students, promising low-cost monthly plans and complete debt forgiveness.
Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas, the managers of the two companies, allegedly violated numerous federal regulations. They used fake reviews, illegally called tens of thousands of people listed on the Do Not Call Registry, and collected over $7.3 million upfront for services that were never provided.
In reality, according to the allegations, the collected payments were never used to pay off the students’ debts. Instead, the money went directly into accounts linked to the Colombian call center.
Measures ordered by the FTC
The settlement prohibits the three individuals involved from:
- pretending affiliation with government agencies or companies
- falsely promising enrollment in debt forgiveness programs
- charging illegal upfront payments
- using fake reviews and testimonials
- operating in any form within the “debt relief” or unlawful telemarketing sectors
In addition to the permanent ban, the order mandates the immediate transfer of over $1 million in personal and business assets. It also includes a suspended $7.3 million judgment, which may become fully enforceable if false financial statements by the defendants are discovered.
FTC statement
“It is illegal for ‘debt relief’ companies to make false promises and use fake reviews to promote themselves,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue to act without hesitation against those who break the law.”
The final decision was unanimously approved by the three members of the Commission and filed with the U.S. District Court for the Middle District of Florida.
How to protect yourself from scams
The FTC reminds that support for student loans is available for free at StudentAid.gov. To avoid fraud, guides and resources are available at ftc.gov/StudentLoans.
Glossary
- Call center: telephone dispatch center, often used for sales or customer service activities.
- Debt relief: services that promise to reduce, consolidate, or cancel a person’s debt.
- Do Not Call Registry: public registry where consumers can list their phone numbers to avoid commercial calls.
- FTC (Federal Trade Commission): U.S. agency responsible for consumer protection and promoting competition.
- Stipulated final order: legal agreement between parties approved by a court, with the force of a final judgment.
