Part of the consumer dispute playbook.
FTC Wins Permanent Debt Relief and Telemarketing Ban Against Operator Named in $45.9 Million Student Loan Scheme
A federal enforcement action resulted in a proposed consent order that would permanently bar individual from working in the debt relief industry or telemarketing. The FTC's complaint alleges that the individual and others named in the suit took in more than $45.9 million from consumers through an unlawful student loan debt relief operation.
What this means for you
Consumers in this situation often pay upfront fees to companies that promise to reduce or wipe out federal student loan balances, then receive little or nothing in return. Federal law generally prohibits debt relief companies from collecting fees before delivering on their promises. When regulators bring enforcement actions like this one, recovered funds may be used to issue refunds — though how much any individual receives depends on the court order and the number of people who file claims. Keeping records of every payment, contract, and communication with a debt relief company helps consumers document their experience if a restitution process later opens.
The facts
- The FTC's complaint alleges that Merdjanian and co-defendants named in the suit collected more than $45.9 million from consumers through an alleged unlawful student loan debt relief operation.per the FTC press release · as of July 21, 2026
- A proposed consent order in the case, if finalized by the court, would impose a lifetime prohibition barring Merdjanian from both the debt relief industry and telemarketing.per the FTC press release · as of July 21, 2026
- The FTC brought this enforcement action against multiple named operators, with Merdjanian among those identified in the agency's complaint.per the FTC press release · as of July 21, 2026
What you can do
If you paid a debt relief company for student loan assistance, holding on to contracts, receipts, and written promises creates a paper trail that becomes valuable if a refund or claims process opens. Legitimate federal student loan repayment and forgiveness programs are available for free at StudentAid.gov — no third party is required to apply. Reporting suspected debt relief fraud to the FTC at ReportFraud.ftc.gov helps regulators spot patterns and build future enforcement cases.
Common questions
What does the FTC's complaint allege against the defendants named in the student loan debt relief suit?
According to the FTC's complaint, the defendants — Merdjanian among them, as named in the suit — allegedly ran an unlawful student loan debt relief operation that the agency says brought in more than $45.9 million from consumers. The FTC sought, among other remedies, a lifetime prohibition from the debt relief industry and from telemarketing. If the proposed consent order is accepted by the court, that prohibition against Merdjanian would become permanent.
What steps can I take if I paid a student loan debt relief company and believe I was harmed?
Start by gathering every document connected to the service — contracts, payment records, and any written promises. Check whether the FTC or another agency has opened a claims process for the company, since affected consumers sometimes receive partial refunds through court-ordered restitution. You can also submit your account at ReportFraud.ftc.gov to add it to the federal record.