Los Angeles City Attorney Mike Feuer has announced that his office has filed a joint civil law enforcement action with the Consumer Financial Protection Bureau, Attorney General Keith Ellison of Minnesota and Attorney General Josh Stein of North Carolina, against Consumer Advocacy Center, Inc., doing business as Premier Student Loan Center; True Count Staffing, Inc., doing business as SL Account Management; Prime Consulting, LLC, doing business as Financial Preparation Services; and  affiliated entities and individuals.

The lawsuit alleges the companies have operated a fraudulent student debt relief enterprise that has scammed consumers out of tens of millions of dollars. The joint plaintiffs also requested a temporary restraining order to halt the defendants’ operations, appoint a receiver to assume immediate control of their business and freeze their assets and bank accounts, with the exception of CAC, whose assets are currently under the control of a bankruptcy trustee.

“Students and families in L.A. and across California confront crushing student loan debt. The last thing they need is to have their burdens compounded by the so-called debt relief practices we allege here,” Feuer said. “We’re fighting to secure the restitution we claim these consumers deserve, and to prevent anyone else from being victimized by this alleged scam.”

Defendants are alleged to have misrepresented that consumers’ debts would be forgiven shortly after engaging the defendants’ services, that the defendants had special relationships with the federal government and federal debt relief programs which would benefit consumers, and that consumers’ payments to the defendants would be applied in their entirety to consumers’ outstanding loans. Additionally, the joint action alleges that the defendants violated federal and state laws to protect consumers and student borrowers from deceptive and fraudulent conduct, including California’s Unfair Competition Law.

Consumers in L.A. city and county are among the thousands nationwide who are alleged to be victims of the defendants’ unlawful conduct. One victim claims to have made monthly “student-loan” payments to Prime for over one year before discovering that none of the funds were sent to his actual loan servicer.

The complaint seeks preliminary and permanent injunctive relief, civil penalties and restitution for victims. Consumers who think they may be victims should contact the City Attorney’s Office by calling (213)978-8070.