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The Kentucky attorney general successfully prosecuted a civil case against Liberty Tax and Student Loan Defense for engaging in deceptive practices that included promising student-loan forgiveness and falsely suggesting an affiliation with the U.S. Department of Education.
The company, which also does business as Freedom Student and Tax Defense LLC, also failed to cooperate with the attorney general’s investigation, a Kentucky judge said.
Enforcement actions: In a 2016 court order, a Franklin Circuit Court judge banned the companies and their owner from providing debt management services in Kentucky. The Kentucky attorney general’s lawsuit alleged that they misled borrowers and charged illegally high fees.
The Kentucky court order left the companies free to operate in any other state.
What the company claims to provide: Help with loan repayment and consolidation, relief from wage garnishments and tax offsets
Based: Pompano Beach, Florida
Management: David Katz, owner
Sources: Kentucky attorney general’s office, Franklin Circuit Court