The Federal Trade Commission (FTC) has taken decisive action against a transnational student loan debt relief scam, permanently banning the operators from the industry and requiring them to turn over more than $1 million in assets. This resolution comes after the FTC alleged that the companies involved deceived millions of struggling student loan borrowers.

In July 2024, the FTC charged Florida-based Start Connecting LLC and Colombia-based Start Connecting SAS, along with their owners Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas, with various illegal practices. These included falsely claiming affiliation with the Department of Education, making misleading promises of low monthly payments and complete loan forgiveness, and illegally contacting consumers on the Do Not Call Registry.

The defendants reportedly extracted over $7.3 million in illegal advance fees for services that were never provided, while promoting fake testimonials and reviews to mislead potential clients. Instead of applying payments to borrowers' loan balances, the operators pocketed the money, sending a significant portion to their call center in Colombia.

To settle the charges, the proposed order prohibits the defendants from making false representations about their affiliations, promising guaranteed loan forgiveness, charging illegal fees, and engaging in deceptive marketing practices. The order also imposes a partially suspended monetary judgment of $7.3 million, with the requirement to surrender over $1 million in assets. If any defendant is found to have misrepresented their finances, the full judgment amount will be due immediately.

The FTC has provided resources to help consumers avoid falling victim to similar scams, and assistance for student loans can be accessed for free at StudentAid.gov. The Commission's vote to approve the final order was unanimous, and it has been filed in the U.S. District Court for the Middle District of Florida.