PHOENIX, AZ--(Marketwired - October 21, 2016) - According to The Oswalt Law Firm, attorneys specializing in offering debt relief and personal bankruptcy advice, a number of student loan holders in Arizona have been targeted by a scam company with promises of credit-repair deals that are loaded with outrageous fees for federal programs that are actually free.
"The potential victims say they were targeted by a company named Student Financial Services through emails and social media ad campaigns with assurances of debt forgiveness," explained one Oswalt Law Firm attorney. "The company, which is based in Irvine, California, actually charged hundreds of dollars simply to enroll in various free federal programs."
The emails and ads touted new legislation -- which doesn't actually exist -- to get rid of student loan debt.
"While the company's name is meant to imply that it has connections with college financial aid offices and its website boasts of working hand-in-hand with the U.S. Department of Education, there are no such connections. In short, the whole thing is a scam," said the Oswalt attorney.
Because more than 42 million Americans owe $1.3 trillion in student debt, there is an abundance of scam artists seeking to take advantage of them with promises of reducing and restructuring loans, particularly ones that are in default and are building up penalty fees or have been turned over to collection agencies.
If anyone is contacted about their student debt by what they suspect to be less than reputable organizations, report the contact the Office of Inspector General's hotline for fraud protection at 1-800-647-8733.
About Oswalt Law Group: With offices in Phoenix, Tempe and Peoria, The Oswalt Law Group provides professional legal financial advice to Arizonans facing crippling debt. For information about strategies for reducing and eliminating debt, visit statewidebankruptcy.com or call (602) 225-2222.