WASHINGTON, D.C. — The Federal Trade Commission (FTC) has taken decisive action against a Nevada-based student loan debt relief operation, alleging it defrauded consumers through false claims and illegal practices. A federal court has temporarily halted the scheme and frozen its assets at the FTC’s request.
The FTC’s complaint targets Superior Servicing and its operator, Dennise Merdjanian, accusing them of preying on student loan borrowers by falsely promising loan consolidation, reduced interest rates, lower monthly payments, and even loan forgiveness. According to the FTC, the defendants misled consumers by falsely claiming affiliation with the U.S. Department of Education and collected illegal advance fees of up to $899, followed by monthly payments supposedly intended for student loans. Instead, these payments enriched the defendants, leaving borrowers deeper in debt.
Consumers were reportedly deceived into believing the defendants were taking over their loans and advised to stop paying their actual servicers. Borrowers later discovered that promised services, such as loan forgiveness, were never delivered. At most, the FTC alleges, the defendants completed basic applications for debt relief, which are otherwise freely available through the Department of Education.
The FTC charged Superior Servicing and its operator with violating multiple laws, including the FTC’s Impersonation Rule, the Telemarketing Sales Rule, the Gramm-Leach-Bliley Act, and prohibitions under the FTC Act against deceptive practices. The agency is pursuing a permanent end to the scheme and further restitution for affected borrowers.
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