Business ProfileforFinancial Preparation Services

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments’ allegations, which have not yet been proven.

On October 21, 2019, the Bureau of Consumer Financial Protection, The State of Minnesota, The State of North Carolina, and The State of California filed a Complaint against Prime Consulting LLC, Dba Financial Preparation Services. Charges filed allege the business is in violation of State and Federal law prohibiting charging and collecting advanced enrollment fees, charging and collecting advanced monthly fees, failing to inform consumers that it was the company’s practice to submit forbearance requests on behalf of the consumer, and falsify consumers' family size, marital status, and income to consumers' student-loan servicers, failing to register with the North Carolina Secretary of State as a telephonic seller and misrepresenting the material aspects of their services such as: 

-Fees paid by consumers were payments toward the consumer's outstanding loan debt;

-Fees paid by consumers reflected the adjusted amount of the consumers' periodic payments toward their outstanding loan balance;

-Consumers' loans would be forgiven in whole or in part shortly after enrolling in Student Loan Debt Relief Companies' services;

-Consumers were eligible or approved for lower monthly payments, including where such payment amounts had been calculated based on an incorrect family size, income, or marital status;

-Consumers monthly payment amount had been lowered for the life of the repayment plan;

-Any fees collected would be held in trust accounts maintained by a third party account provider until the Student Loan Debt Relief Companies had performed certain services.