WASHINGTON—As a result of a Federal Trade Commission lawsuit, a fraudulent student loan debt relief operation and its owners are permanently banned from the debt relief industry and required to turn over all assets to resolve allegations that they misled consumers, the FTC reported.
“Consumers looking to pay off their student loan debt should not have to worry about being scammed,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “The FTC will continue to hold fraudsters that pocket Americans’ hard-earned money accountable.”
The FTC alleges Panda Benefit Services (also doing business as Prosperity Benefit Services), its affiliates, and its operators (collectively, defendants):
- Targeted consumers burdened with student loan debt and tricked them into paying hundreds to thousands of dollars in illegal fees toward fake student loan forgiveness
- Falsely claimed that consumers who paid for defendants’ program were guaranteed loan forgiveness and that the program would reduce their loan payments
- Pretended to be affiliated with the U.S. Department of Education, telling consumers they would take over servicing of their loans while actually pocketing consumers’ money
- Swindled more than $16.7 million in unlawful advance fees from students seeking debt relief
On May 14, 2025, the court entered a stipulated order with Select Student Services and Eduardo Martinez. At the FTC’s request, the court entered a default judgment against Public Processing Services, Quick Start Services, and Signature Processing Services on May 6, 2025. Previously on Oct. 2, 2024, the court entered stipulated orders with Panda Benefit Services, Pacific Quest Services, Prosperity Loan Services, Emiliano Salinas, and Melissa Salinas and with Clarity Support Services and Christopher Hanson, the FTC explained.
The final orders ban defendants from the debt relief industry. The orders against Select Student Services and Eduardo Martinez and Public Processing Services, Quick Start Services, and Signature Processing Services also ban them from telemarketing. In addition, the orders prohibit the defendants from:
- Making any misrepresentations about other products or services
- Using false statements to collect consumers’ financial information
- Impersonating any other people or government entities
Finally, the order as to Student Services and Martinez impose a monetary judgment of nearly $16.8 million, which, in the case of the stipulated orders, is mostly suspended due to an inability to pay, the FTC said.