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The Federal Trade Commission filed a lawsuit in 2017 accusing Strategic Doc Prep Solutions LLC and its owner of running a “deceptive” debt relief operation violating federal laws.
The agency’s suit alleged the company promised to reduce or eliminate customers’ remaining student loan debt. In reality, the FTC alleged, the company, along with several affiliated businesses, pocketed the money and put nothing toward their customers’ loan balances.
The suit also alleged the company charged illegal upfront fees that were as high as $1,200.
“Consumers who paid Strategic Student Solutions for help with their student loans watched their situations go from bad to worse,” said Tom Pahl, acting director of the FTC’s Bureau of Consumer Protection, in a news release. “The bottom line: never pay an up-front fee to a company promising to deliver debt relief.”
President Dave Green also runs affiliated businesses named in the FTC’s lawsuit: Strategic Debt Solutions LLC, Strategic Credit Solutions LLC, Strategic Student Solutions LLC, Student Relief Center LLC and Credit Relief Center LLC.
The FTC alleged that Green, owner of the related entities, used corporate funds to pay for personal expenses such as jewelry, casino tabs, mortgage payments, luxury vehicles, clothing, and construction of a pool.
Enforcement actions: The FTC’s lawsuit seeks a permanent injunction to bar Strategic Doc Prep Solutions from operating nationally, as well as payment of customer restitution.
In a separate case, a Nevada court ordered Strategic Student Solutions to pay $333,000 to a Nevada woman who filed a lawsuit alleging hundreds of violations of the federal Telephone Consumer Protection Act.
The Nevada court’s default judgment in 2017 ended a lawsuit accusing the company of 222 knowing and willful violations of the federal law. The company was accused of using an automatic dialing system to call the woman’s cell phone before 9 a.m. and after 8 p.m. to solicit her business without permission.
“As a direct consequence of defendant’s harassing phone calls, acts, practices and conduct, the plaintiff suffered and continues to suffer from anger, anxiety, emotional distress, frustration, rage, headaches, an upset stomach, heart palpitations, and has otherwise been totally annoyed by defendant’s intrusive and illegal phone calls,” the suit alleged.
What the company claims to provide: Loan modification
Based: Las Vegas and Lake Worth, Florida.
Management: Dave Green, president
Sources: Federal Trade Commission, U.S. District Court, Nevada and Southern District of Florida, Better Business Bureau