Alleged Debt Relief Scheme Accused of Pocketing $84 Million in Illegal Fees

  • Seven Democratic AGs partnered with the CFPB to file a lawsuit against StratFS, LLC, f/k/a Strategic Financial Solutions, LLC, and affiliated entities and individuals (collectively, “SFS”), alleging violations of the Telemarketing and Consumer Fraud and Abuse Prevention Act (Telemarketing Act) and federal and state consumer protection laws through the operation of an illegal debt-relief scheme.
  • According to the complaint, SFS’s alleged scheme advertised loans to consumers with large debts but often told those consumers that they did not qualify for a loan and instead advertised to them SFS’s debt relief services, and also charged exorbitant, illegal advance fees, totaling $84 million, for debt relief services that did not settle or reduce consumers’ debts, among other allegations.
  • The complaint seeks injunctive relief, damages and other monetary relief, and civil penalties, among other relief.