CFPB v. StratFS, LLC

StratFS, LLC allegedly operated a debt-relief scheme that collects exorbitant, advance fees from vulnerable consumers according to CFPB. StratFS representatives allegedly induce consumers to sign up for debt-relief services using a bait and switch scheme that draws consumers in by offering a debt consolidation loan. After making the sale, StratFS allegedly begins debiting fees for the debt-relief services from consumers’ escrow accounts long before any of the consumers’ debts have been settled. Since January 2016, defendants allegedly have collected at least $100000000 from consumers before any of the consumers’ debts were settled, and in some instances when no such settlements ever took place according to CFPB.

Summary generated from official Consumer Financial Protection Bureau press release