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LEGAL NEWSLINE

Thursday, April 25, 2024

FTC adds defendants to case against California student debt relief company

Federal Gov
Gavelbook

WASHINGTON, D.C. — The federal government has added two additional defendants in its case against Impetus Enterprise Inc, a California-based student debt relief company accused of defrauding consumers out of millions of dollars through its deceptive loan practices.

The Federal Trade Commission has added Wyoming-based Capital Sun Investments, LLC and its manager Jimmy Calderon to the student debt relief case and filed an amended complaint in the U.S. District Court for the Central District of California. The FTC alleges the defendants allegedly deceived customers who were attempting to lower their monthly payments or debt incurred by their student loans. 

In its complaint, https://www.ftc.gov/system/files/documents/cases/cd_capital_proposed_fac.pdf , the FTC alleges the defendants preyed on consumers with student debt through calls, websites and direct mail advertising and charging nearly $500 or more in illegal "upfront fees."  The company failed to obtain loan debt forgiveness or repayment programs with less monthly payments and in many cases, customers owed more money after signing up for the fraudulent program offered by the defendants, according to the FTC. 

The FTC's voted 5-0 in favor of filing the amended complaint to include Capital Sum Investments and Calderon. 

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