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ALDEN F. ABBOTT 

Acting General Counsel 

SARAH SCHROEDER, Cal. Bar No. 221528 

ROBERTA TONELLI, Cal. Bar No. 278738 

EV AN ROSE, Cal. Bar No. 253478 

Federal Trade Commission 

901 Market Street, Suite 570 

San Francisco, CA 94103 

sschroeder@ftc.gov, rtonelli@ftc.gov, erose@ftc.gov 

Tel: (415) 848-5100; Fax: (415) 848-5184 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

OAKLAND DIVISION 

FEDERAL TRADE COMMISSION, 

Plaintiff, 

vs. 

AMERICAN FINANCIAL BENEFITS 

CENTER, a corporation, also d/b/a AFB and AF 

STUDENT SERVICES; 

AMERITECH FINANCIAL, a corporation; 

FINANCIAL EDUCATION BENEFITS 

CENTER, a corporation; and 

BRANDON DEMOND FRERE, individually 

and as an officer of AMERICAN FINANCIAL 

BENEFITS CENTER, AMERITECH 

FINANCIAL, and FINANCIAL EDUCATION 

BENEFITS CENTER, 

Defendants. 

Case No. 4:18-cv-00806-SBA 

Related Case: 4:l 7-cv-04817-SBA 

DECLARATION OF DONALDS. 

CLARK IN SUPPORT OF FTC'S 

MOTION FOR PRELIMINARY 

INJUNCTION 

DECLARATION OF DONALD S. CLARK IN SUPPORT OF FTC'S MOTION FOR 

PRELIMINARY INJUNCTION 

4: 18-CV-00806-SBA 

Case 4:18-cv-00806-SBA Document 106 Filed 04/19/18 Page 1 of 4 
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DECLARATION OF DONALDS. CLARK 

1. My name is Donald S. Clark. Since August 1988, I have served as Secretary of 

the Federal Trade Commission ("Commission") in Washington, D.C. I am over 18 years old. 

The following statements are within my personal knowledge and derived from my experience as 

Secretary and as an attorney with the Federal Trade Commission, and if called upon as a witness, 

I could and would testify thereto. 

2. The Secretary is the Commission's "court clerk," responsible for implementing 

the Commission's voting procedures, creating official records of its decisions, receiving and 

serving Commission orders and other official documents, and coordinating the preparation of 

responses to congressional constituent inquiries. 

3. The Commission received over 2.68 million pieces of correspondence in calendar 

2017, including consumer complaints, letters from counsel, and inquiries from law enforcement 

partners. This count does not include correspondence sent to individual Commission staff 

attorneys. Due to the high volume of correspondence the Commission receives, it cannot write 

unique responses to each inquiry. 

4. Since August 2015, the Commission has received at least ten pieces of 

correspondence from Robby H. Birnbaum, an attorney with the law firm Greenspoon Marder, 

LLP. For example, on December 15, 2016, Mr. Birnbaum sent a letter to former Chairwoman 

Edith Ramirez expressing frustration that FedLoan Servicing, a government loan servicer, sent a 

notice to borrowers warning them about using third-party organizations to consolidate their 

student loans. A true and correct copy of Mr. Birnbaum's December 15, 2016 letter to 

Chairwoman Ramirez is attached as Clark Attachment A. The Commission received a followup letter from Mr. Birnbaum on March 1, 2017, a true and correct copy of which is attached as 

Clark Attachment B. On March 15, 2017, the Consumer Response Center in the Commission's 

Bureau of Consumer Protection added Mr. Birnbaum's supplemental letter to Consumer 

Sentinel, the Commission's complaint database, and sent Mr. Birnbaum a standard response 

DECLARATION OF DONALDS. CLARK IN SUPPORT OF FTC'S MOTION FOR 

PRELIMINARY INJUNCTION 

4: l 8-CV-00806-SBA Page 2 

Case 4:18-cv-00806-SBA Document 106 Filed 04/19/18 Page 2 of 4 
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acknowledging receipt of his letter. A true and correct copy of the Consumer Response Center's 

response to Mr. Birnbaum is attached as Clark Attachment C. 

5. Commission staff opened an investigation into the business practices of American 

Financial Benefits Center, Ameritech Financial, and Financial Education Benefits Center 

(collectively "Ameritech") on December 6, 2016, after receiving numerous consumer 

complaints. 

6. According to the Commission Mail Room's Daily Accountable Mail and Package 

Log for the month of January 2017, the Commission received a letter from Mr. Birnbaum on 

January 3, 2017. An administrative staff member from former Chairwoman Ramirez's office 

retrieved the letter from the FTC Mail Room, but there is no further record of the whereabouts of 

the letter. There is no evidence that the letter was forwarded to FTC staff investigating 

Ameritech. 

7. The Commission's Division of Consumer & Business Education ("DCBE") gives 

consumers the tools they need to make informed decisions and businesses the tools they need to 

comply with the law. DCBE produces, promotes, and disseminates information that is timely, 

targeted, objective, actionable, and in plain language. DCBE's information is available free on 

the Commission's publicly available website, www.ftc.gov. For example, the website includes a 

"Business Center" page that includes, among other things, a 13-page guide entitled "Debt Relief 

Services & the Telemarketing Sales Rule: A Guide for Business," and a detailed document 

entitled "Complying with the Telemarketing Sales Rule." The Business Center also includes 

extensive information about the requirement that businesses clearly and conspicuously disclose 

material information to consumers. For example, the guide entitled "Big Print. Little Print. 

What's the Deal" discusses "why fine print is not so fine in advertising and what you need to do 

to disclose the details of the deal." 

8. The Commission's website also includes extensive information about companies 

and practices that the Commission alleges have violated the law. For example, on May 25, 2016, 

DECLARATION OF DONALDS. CLARK IN SUPPORT OF FTC'S MOTION FOR 

PRELIMINARY INJUNCTION 

4: 18-CV-00806-SBA Page 3 

Case 4:18-cv-00806-SBA Document 106 Filed 04/19/18 Page 3 of 4 
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the Commission issued a press release describing three federal court complaints it filed against 

several student loan debt relief companies for violating the FTC Act and the Telemarketing Sales 

Rule. 

9. The Commission has in the past filed "sweeps" of cases concerning certain 

industries and practices which, as a corollary to addressing violations of the laws the 

Commission enforces, raise awareness among consumers and businesses as to the potential 

illegality of the practices at issue. For example, on May 12, 2017, the Commission announced a 

sweep called Operation Tech Trap which, as the Commission press release describing it states, 

addressed "tech support scams that trick consumers into believing their computers are infected 

with viruses and malware, and then charge them hWldreds of dollars for unnecessary repairs." 

The Commission reviews and by vote approves filing each case in a sweep only if it has reason 

to believe that the law has been violated as alleged in the complaint filed in that case. 

10. On October 13, 2017, the Commission announced "Operation Game of Loans," a 

sweep involving student loan debt relief companies. None of the defendants in this case was a 

defendant in any of the cases in the Operation Game of Loans sweep. 

11. I declare under penalty of perjury that the foregoing is true and correct. Executed 

on the seventeenth day of April, 2018, in Washington, DC. 

~---~,. 

Donald S. Clark 

DECLARATION OF DONALDS. CLARK IN SUPPORT OF FTC'S MOTION FOR 

PRELIMINARY INJUNCTION 

4: l 8-CV-00806-SBA Page 4 

Case 4:18-cv-00806-SBA Document 106 Filed 04/19/18 Page 4 of 4 
Case 4:18-cv-00806-SBA Document 106-1 Filed 04/19/18 Page 1 of 4 

Clark Attachment A 
From the desk of: Robby H. Birnbaum, Esq. 

Trade Centre South, Suite 700 

I 00 W. Cypress Creek Road 

Fort Lauderdale, Florida 33309-2140 

954.491.1120 (Telephone) 

954.343.6960 (Facsimile) 

Email: Robby._Birnbaum@gmlaw.com 

December 15, 2016 

Via Certified Return Receipt U.S. Mail 

Chairwoman Edith Ramirez, Esq. 

Federal Trade Commission 

600 Pennsylvania A venue 

Washington, D.C. 20850 

RE: Complaint against FedLoan Servicing For Aggressive and Unfair 

Consumer Practices. 

Our File No.: 33508.0006 

Dear Chairwoman Ramirez: 

This firm represents a number of companies that specialize in federal student loan document 

preparation · and processing services to assist borrowers identify and gain approval for one or 

more government-offered debt relief programs. 

I am sending this letter as we recently received a copy of an e-mail that FedLoan Servicing 

appears to be transmitting to some of its student loan debtors. As you probably know, FedLoan 

Servicing is a student loan account services and collector that works under permission from the 

US Department of Education. Here is one of their emails sent to financially vulnerable consumer 

debtors: 

Thank you for contacting F edLoan Servicing! 

Our records indicate that you were most likely going through a third party 

organization who offered to assist with the consolidation process. 

However, FedLoan Servicing now holds and services your newly 

consolidated loan as of May 26, 2016. 

If you are not satisfied with the assistance you are receiving from the third 

party company you hired, you can contact the Federal Trade Commission 

(FTC) with your complaints. It is important to note that your complai~t is 

against the company you hired to assist you in the repayment of your 

Federal Student Loans and not the student loan servicer. 

The complaint can be filed online by visiting the FTC website (fie.gov) or 

Boca Raton I Denver I Ft, Lauderdale I Las Vegas I Miami I Miami Beach I Naples I New York 

Orlando I Port St. Lucie I San Diego I Tallahassee I Tampa I West Palm Beach 

Case 4:18-cv-00806-SBA Document 106-1 Filed 04/19/18 Page 2 of 4 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA 

Clark Att. A-1
Edith Ramirez, Esq. 

December 15, 2016 

Page No. 2 

by telephone by calling the toll-free telephone number of 1-877-FTCHELP O-877-382-4357). 

Your account is currently past due from November 10, 2016 for $239:67. 

We report the account status monthly to each nationwide consumer 

reporting agency. 

We recommend that you use the "Contact Us" links on our website, 

MyFedLoan.org, to submit inquiries via a secure email form. Please use 

your email address on file when completing this form. You may also .call 

us toll-free at (800) 699-2908 to reach our Customer Service Department, 

which is open Monday through Friday from 8:00 AM until 9:00 PM (ET). 

The correspondence highlights the unethical collection practices employed by some of the 

federal loan servicing companies. The correspondence above starts with a supposition that the 

consumer has hired a third party to assist in consolidating their loans. It then directs the 

consumer to contact the FTC if they were not satisfied with the company assisting them, 

providing specific instructions and website link as well as a toll-free telephone number. From 

there, it reminds the consumer that the consumer is past due on loan payments. 

Basically, it scares the consumer into second-guessing their decision to contract with a private 

company and then pushes for outstanding sums to bring the consumer current. It doesn't 

necessarily provide suggestion about other avenues and alternatives, such as income-based 

repayment programs that could assist a consumer who might otherwise be having difficulty 

bringing loan payments current. 

For some time we have been advised that various student loan servicers are verbally criticizing 

student loan document preparation companies and directing borrowers to contact regulators 

(even when the consumers expressed no concern over the services they were receiving). Now, it 

seems the servicers are putting their directions in writing, demonstrating bias, and anti-consumer 

choice collection practices. Indeed, I have heard from dozens of consumers · about how 

aggressive FedLoan Servicing is. In fact, we were previously advised that a customer of one of 

our clients said that FedLoan (while the customer was on hold with FedLoan's customer service) 

heard a recording directing consumers not to work with private companies for student loan 

assistance. Then the customer service representative repeated the same information two more 

times when back on the telephone before actually assisting the consumer. Such tactics fit right in 

line with other allegations that servicers are blanketly calling student loan document prep 

companies "scams." The collection agents seem to have been given full autonomy to say what 

they want about third parties. I'd imagine that recorded calls between the servicers and the 

borrowers who have hired third parties to assist . them apply for federal loan programs would 

show a clear pattern of such aggressive behavior. 

It was when one of our compliance-focused clients (that complies with the FTC's TSR debt 

relief amendment) received a copy of the written verbiage above from one of its customers that 

we became extra concerned. Clearly, FedLoan (and other loan servicers) are trying to block 

Case 4:18-cv-00806-SBA Document 106-1 Filed 04/19/18 Page 3 of 4 

Declaration of Donald Clark 

4:18-CV-00806-SBA 

Clark Att. A-2
Edith Ramirez, Esq. 

December 15, 2016 

Page No. 3 

consumers from receiving private help to fight against the unethical practices that the student 

loan servicers have been employing for some time. As the FTC and CFPB are aware and 

lawsuits have been filed against certain federal loan services (i.e. Navient), such companies have 

repeatedly demonstrated that they are not necessarily looking out for the best interests of the 

consumers and placing them into federal loan programs that could have allowed zero-dollar 

payments based on earnings and eventually led to debt forgiveness. 

We have attempted to reach out to loan servicers, including FedLoan and MOHELA but are 

constantly treated rudely and they state they are "turning in" our clients. You would not believe 

the verbal anger expressed by these groups, and it is shocking that they refuse to even have a 

rational discussion relating to the benefits of protecting consumers and giving them choices. My 

feeling is that they don't like the competition from our FTC-compliant clients (relief providers) 

and, instead, want to continue to pressure debtors into heeding their heavy-handed financial 

demands. 

Where our clients are complying with regulations governing their marketing, contracts and 

services and the federal loan servicers are not, it is clearly unjust that the private student loan 

document preparation companies get negatively branded and looked down upon by regulators 

when the harm is coming from the servicers' collection practices and their constant efforts to 

direct consumers to file grievances against the private companies. 

My hope is that in bringing this persistent problematic situation to your aitention, the 

Commission will be mindful that it is our clients who are fighting to protect consumers. 

Very Truly Yours, 

GREENSPOON MARDER, P.A. 

✓ R~iit::;;; 

For the Firm 

cc: Client 

Case 4:18-cv-00806-SBA Document 106-1 Filed 04/19/18 Page 4 of 4 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA 

Clark Att. A-3
Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 1 of 12 

Clark Attachment B 
February 22, 2017 

Federal Trade Cc,,,.,,::;;:nn 

Vili Certified Return Receipt U.S. Mail ReceivvcJ 

Chairmah Maureen K. Ohlhausen, Esq. . .MAR O 1,·,2017 . . Federal Trade Commission 

~O:Q ~-eiuisyJ,,;,ania Avenue Cha'· ., , W 'h' ·. D ,.. ~og·r · Irman as 111gton, .\..,. L. .)l/ · _ _ · ._. , • /' 

1 {) · ! 

, . , 

'E·. . . . "• .. . • . . . :.. . . . . ·. , h ~ 7 .. f'

l'- Complamt agamst Fedloan Serv1cmg For Aggressive and Unfiir · · : 

Consumer Practices. 

Our File No.: 33508.0006 

i 

Dear Chairman Ohlhausen: 

I am supplementing a letter that I sent on_ December 15, 2016 to the Commission's prior 

Chaimmn_. Ms. Ramirez, relating to abusive behavior by federal student loan servicers (collection 

agencies that work for the Department of Education against American consumers). 

Given that there has been some transition within the FTC the past few months, and 1.hat ,ve have 

not yet heard back from the Commission, I'm enclosing as Exhibit A a copy of tr.y December 

correspondence for your reference. This letter now supplements my prior December letter 

bccm1sc we have learned of' additional alarming activity by these large debt servicer 

organizations that wor~ against consumers in unsct1ling and aggressive ways. 

My law finn represents various companies that assist in federal studein ioan.applidnibn services 

that' help borrowers LO: identi t~· and gain approval for one or more government-offered debt relief 

programs. The ·pu1'pose of my December 20 I 6 letter was to alert the Commission to the 

aggressive, L!nethicai and injurious tactics that some loan servicers were using to attack 

consumers. Unfortunately, in the past couple of months l have received additional reports from 

. clients advising that the servir;ers' behavior has not subsided and, in many cases, is becoming 

worse. 

While I understand that the CFPB has been taking some action against these servicr:rs resulting 

in a few press-release notable events for the CFPB, their actions have done little to P.ctuaily help 

the consumers who are being harmed. Having worked with the FTC for over 17 ycc1rs on many 

differe111 consumer protection matters, I have a lot more faith in the Commission .2.:1d its staffs 

nbility to affect real improvements lor these vulnerable consumers. 

Boca R.amn I Denver I Fe Lauderdale I ll.'i Vegas I Miami I Miami Beach I Naples I New York Orlando ] Pore St. Lucie I San Diego I T allahasscc I Tampa I West Palm Beach 

From che desk of: Robby H. Birnbaum, Esq. 

Trade Cencre ~ouch, Suite 700 

100 W. Cypress Creek Road 

Fore Lauderdale, Florida 33309-2140 

954.491.1120 (Telephone) 

954.343.6960 (Facsimile) 

Email: Robby.Birnbau"!@gmlaw.com 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 2 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-1
Maureen K. Ohlhausen, Esq. 

Fe~ruary 22, 2017 

Page No. 2 

Additional complaints that I have received regarding abusive student loan servicer a:-id collection 

efforts include the following: 

• Profiling clients that may be working with third-party publically or privately _i_)rovided 

applic:ation or relief providers (some who are licensed and compliant, and so::-a1e being 

nonprofit organizations) and reaching out to those consumers via email and tf.lephone and 

directing them to file complaints with the FTC, AG, and CFPB. Enclosed as•Exhibit 13 is 

a sample e-ma_il that led a consumer to second guess the assistance that the cc:~1si.1mer was 

obtaining. Via telephone, we understand that these servicers are instructing t:1eir 

representatives to describe the independent helpers as being "scams" or worse, with the 

intention of reeling the consumer back into their aggressive collection systems. 

• There have been several instances that we have been told of Fedloan reaching out to 

customers of the application preparati0n companies via telephone to inquire.2bour famiiy 

size, based on what was submitted en an application. Fedloan then proceeds ~'.l ask the 

customers if a third party "inapproprintcly" submitted false information rcga:'1;ing 

"dependents" }Vhich, of course, startles the customer and makes them second guess their 

ck·cision to hir.e a third party for assistance, even though nothing may be wro::g. 

• Even worse, for those consumers who happen to qualify for $0.00 Income Driven 

Repayment plans, when some has called to ask Fedloan about interest not being paid in 

2016 (1098 fo1111S), Fedloan ·is advising that there have been no qualified pav,cients made 

and no progre~s f1n the '.oans ,,,hich d~tepilv•:I;.- cau3t::i pallic ·~vit!~1 -:-;;;1to:-::~:~ iih,:; th~r. 

leel compelled to caneei payments 2.nd not pay for the services that the third. ;i1rties 

provided. In fact, the way those income-driven repayment plans work is that c:ven if 

someone does not have !o make monthly payments due to their income and fr.:nily size, 

each month is counted towards their 1

.otal required payments for loan forgiveness 

programs. Thi.s servicer tactic tends t0 hurt the consumer's long-tern chances 'Jr 

repayment sticcess. . 

• Some scrviccrs are also placing borrcwcrs in forbearance and deferring borrcwers' 

payments when the borrower has available forbearance or deferment when th;y find out 

.that the consumer was hiring a privr.te company to assist in order to then prevent the 

consumer from working with such private companies. The scrvicers should tive been 

assisting.from the get-go and not just-when they learn that the consumer has•::.'.\d to resort 

to !0oki11g for third party assistance. 

;'v!_y guess is that a lot of these abuses have :o do with the way the scrvicers and the-ir collection 

agents are compensated. My b.ope :s that in cringing this persistent probkmatic situation to your 

allention, ihe Commission will be minclfo'. . .that it is our cl ients whc arc fightiJ: {,', to protect 

consumers. 

Congratulations on your position with the F~'C. I look forward to wo:-!<ing with you. 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 3 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-2
Maureen K. Ohlhausen, Esq. 

February 22, 2017 

Page No. 3 

Very Truly Yours, 

GREENSPOON MARDER, P.A. 

. . for R~.it:::Esq . 

For the Finn 

cc: Client 

Enclosures 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 4 of 12 

 Declaration of Donald Clark 

4:18-CV-00806-SBA

Clark Att. B-3
,Exhibit A 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 5 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-4
Marder From the desk of: Robby H._ Birnbaum, Esq. 

Trade Centre South, Suite 700 

I 00 W. Cypress Creek Road 

Fore Lauderdale, Florida 33309-2140 

954.491.1120 (Telephone) 

954.343.6960 (Facsimile) 

Email: Robby._Birnbaum@gmlaw.com 

December 15, 2016 

Via Certified Return Receipt U.S. Mui/ 

Chairwoman Edith Ramirez, Esq. 

federal Trade Commission 

600 Pennsylvania A venue 

Washington, D.C. 20850 

RE: Complaint against Ft:!dLoan Servicing For Aggressive and Unfair 

Consumer Practices. 

Our file No.: 33508.0006 

Dear Chairwoman Ramirez: 

This finn represents a numbe.r of companies that specialize in federal student loan document 

preparation ·,md processing services to assist botTowers identify and gain approval for one or 

more government-offered debt relief programs. 

J am sending this letter as we recently received a copy of an e-mail that FedLoan Servicing 

appears to be transmitting to some of ils studeni loan debtors. As you probably know, Fedl.oan 

Servicing is a student loan account services and collccior that works under permission from the 

US Department ofEducalion. Here is one of their emails sent to finaucinlly vulnerable consumer 

debtors: 

Thank you for contur:ting FcdLoan Servicing! 

Our records indicate that you were mosl likely going through a third party 

organization who offered to a~sist with the consolidation process. 

However, FedLoan Servicing now holds and services your newly 

consolidated loan as of May 26, 2016. 

Ir you are not satisfied with the assistance you are receiving from the third 

party company you hired, you can contact the .Federal Trade Commission 

(FTC) with your complaints. It is important to note 1hat your complaint is 

against the company you hired to assist you in the repayment of your 

Federal Student Loans and not the smdent loan servicer. 

The complaint <:an be filed online by visiting th<: FTC website (fie.gov) or 

Boca R:11.tor, j De;'lver I ft. l aud~rd3le I I.as V~as 1 Mi;\n1i ] Mi3mi Beach I Nc1ptes I New York 

Ortando I Pon. S1.. lucie I San Diego I Ta\/ah~ss.c~ J T;ampa I 'Nest P1.lrn Beach 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 6 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-5
Edith Ramirez, Esq. 

December 15, 2016 

Page Nu. 2 

by tclcphunc by calling the toll-free telephone number of 1-877-fTCHELP 0-877-382-4357). 

Your account is currently past due fi-om November 10, 2016 for $239,67. 

We report the account status monthly to each nationwide consumer 

reporting agency. 

We recommend that you use the "Contact Us" links on our website, 

MvFedLomi.org. to submit inquiries via n secure email fo1m. Please use 

your email address on file when completing this form. You m11y also.call 

us toll-free at ( 800) 699-2908 to reach our Customer Service Department, 

which is open Monday through Friday from 8:00 A,\lf until 9:00 PM (ET). 

Th::. correspondence highlights the unethical collection practices employed by some of the 

ieckral loan servicing companies. The correspondence above stmts with a supposition that the 

consumer has hired a third party to assist in consolidating their loans. Tt then din::cts the 

consum.::r to conwct th.c FTC if they were not satisfied with the company assisting them, · 

providing specific instructions and websiic link as well as a toll-free telephone number. From 

there, it reminds the·consumer that lhc consumer is past due on loan payments. 

Basically, it scares the consumer into second-guessing their decision to contract with a p1ivate 

company and then pushes for outstanding sums ro bring the 1:onsumer cuJTent. It doesn't 

necessarily provide suggestion about other avenues and alternatives, such as income-based 

repayment programs that could assist a consumer who might otherwise be having difficulty 

bringing loan payments current. 

For snme time we have been advised that various studem loan servicers are verbally criticizing 

5tudcnt loan document preparation companie::s and diret:ting borrowers to comact r.::gulators 

(t'.ven wht:n the consumers expressed no c-0ncern over the services they were:: receiving). Now, it 

seems ihc scrvicers are putting their directions in writing, de::mnnstrating bias, and anti-consumer 

choice collection practices. Tndee<l, I have heard from dozens of constuners about how 

aggressive fedLoan1 Servicing is. in fact, we were previously advisc:d that a customer of one of 

our clients said that FedLuan (while the customer was on hold with FedLoan's customer service) 

heard a recording directing consumers not to work with private companies for srudent loan 

assistance. Then tbe customer service representative repeated the same information two more 

times when back on the telephone •before actually assisting the consumer. Such tactics fit right in 

!foe with other allegations that servicers ure blankctly 1:alling student loan document prep 

companies "scams." The collection agents seem to have been given full autonomy to say what 

they want about third panics. ['d imagine that recorded calls between the scrvicers and the 

bo1rnwers who have hired third parties to assist them apply for federal loan programs would 

show a clear pallern of such aggressive behavior. 

It was when one of our complianc<!-focused clients (that complie., with the FTC's TSR debt 

relief amendm~nt) received a copy of the wrirtcn verbiage above: from one of its customers thal 

we became extrn concerned. Clc:irly, FedLoan (and other loan serviccrs) are trying to block 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 7 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-6
Chairwoman Edith Ramirez, Esq. 

December I 5, 20 I 6 

Page No. 3 

consumers from receiving private help to fight against the unethical practices that the srudent 

loan serviccrs have been employing for some time. As the FTC and CFPB are aware and 

lawsuits have been fi.led against certain federal loan services (i.e. Navient}, such companies have 

repeatedly demonstrated that they are not necessarily looking out for the best interests of the 

consumers and placing them into federal 'loan programs that could have allowed zero-dollar 

payments based on earnings and eventually led 10 debt forgiveness. 

We have atlempted to reach out to loan servicers, including FedLoan and MOHELA but arc 

COI)Stantly treated rudely and they state they arc "turning 111" our clients. You would not believe 

the verbal anger expressed by these groups, and it is shocking that they refuse to ·even have a 

rntional discussion relating to the benefits of protecting consumers and giving them choices. My 

ft:cling is tha1 they don't like the competition from our rTC-compliant clients (relief providers) 

and. instead, want to continue to pressure debtors into heeding their heavy-handed financial 

demands. 

Where our clients are complying with regulations governing their marketing, contracts and 

services and the federal loan servicers are not, it is clearly 1mjust thnl the private student loan 

document _preparation companies get negatively branded and looked dow11 upon by regulators 

when the haim is coming from the serviccrs' collection practices and their constm1t efforts ro 

direct consumers to file grievances again5i the private companies. 

My hope is that in bri.nging this persistent problematic situation to your a"ftcntion, the 

Cornmission will be mindful that it is our clients who arc lighting to protect con~umers. 

Very Trnly Yow-s, 

GREENSPOON l\·!ARDER, P.A. 

R~irn~ 

For the Finn 

cc: Client 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 8 of 12 

 Declaration of Donald Clark 

4:18-CV-00806-SBA

Clark Att. B-7
B 

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 9 of 12 

 Declaration of Donald Clark 

4:18-CV-00806-SBA

Clark Att. B-8
FRAUD ALERT - Notice about student loan servicing scams 

6MOHELA: U.S. Dopartnteut of Education IAforma\lon Abov1 )'aur feJenl •tud•n\ t011n 

A Dcp3nm~nt of Edui:auc-n ~eiv~:er • 0 

1vlOHELA recently became aware of debt relief companies that are charging fees to help 

you with your student loan such as completing consolidation, applying for an incomedriven repayment plan, qualifying for forgiveness progrnms, and/or getting 0111 of 

default. Caution - you never have to pa~· for student loan help! The U.S. Department of 

Eclucalion contracts with MOH l~LA to service your student loan and we in turn provide 

services to you fo r FREE. 

As your dedicated federal servicer contracted to work for the Department of Education, we can 

help you: 

Lower monthly payments 

Consolidate federal student loans 

Check on loan forgiveness 

Apply for options to postpone payments 

Resolve delinquency 

Get out of default 

You never need lO pay for these scrvict,s. ivlOH ELA is committed to providing you with 

qua lit~' and copiplimentary customer service. For help with your student loan, use 

our official website I - mohcla.com - or call using our official phone number 888.866.4352. 

Protect you rsr1f 

Unfortunately; some companies act unethically or potentially illegally to get your 

business-misrepresenting themselves as having a 1·elationship with the Department of 

Education, violating students' privacy by inappropriately using their FSA IDs, and 

claiming that government programs are their own. The Department of Education 

continues efforts to crack down on these companies to protect student borrowers like you. 

If you think that you've been scammed. learn your options. Many state governments have 

an Otlice of Consumer Affairs or Consumer Protection either within or affiliated with, the 

Oflicc: of the Attorney General fo r each state. At the tedcral level, the FTC and the CFPB 

have the authority to act against companies that engage in deceptive or unfair practices. 

Learn more abolll how to rirotect yourself: http://b1o!.!.ed.!!ovi20 16/01/dont-be-fook:d-vouCase 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 10 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-9
ve-to-p::iv-for-st udcnt -loan-he Ip/ 

Sincerely, 

l'\•IOHELA 

This message is an attempt to collect a debt and any inform~tion obtained will be used for that purpose. 

(.'a!irfmiia ~fide-rm:: 7111! .,·,r,te Uo•·l•mlu,I Foir JJd11 CnfJ,•clfon /'ru,·Jit:,!.\' Ac, mid ,b,• J~di:ra! Fwr IJehr Cn/1,•ctirm ProL'tic,:.{ Ac,· r~•qt,irr: rliut . .:•.n i!pt 

1md,·r mm.,110/ ,:fri:uru.~1,mu,(, collec1or.\· muy nm c,wrm:r Jvt. hrfim: S a.m. or c~/lc-r 9 p.m. Th,!_\' mu}' not harm·., J-uu bJ• u.~ing threm., 1Jf 1wf<1tCf! or 

arre.,1 nr /1.1• m:in]t! nh(c:crw langua~e. Coll.:cw1r.1· . ma)'nvt u:.-t" JI.ti.,,· 11r mi.1/,:odi11):. .,:orl'nh'llf.• vr r:f/1/yrm CJt work iftlu:y knew nr hu1·J! n.:ti.,;nn l<J know 

1hu1 .m" mur 1wt rtc,·n•r per.H.»UJI ,·alls (1/ Wf1rk. F11r 1/ui nm.\"/ pan. Cr)//c:ctm·,; may hOf 1,dl unorher p~•r.,an, vrhl!r 1ha11 your a1ttm11, .. ~ or .\f".1U,ft!, 

,,h,11Jt yriurdi;hr. L.olltcmn- ma:, cnmao a,mlh,:r pt'r.Mn lcJ nllfjirm _l-nur ll'J("allon 11r rnfim:,• n jm~l!,lllt!nl. For mCln! inf<1rmatio11 ,1bv111 il<•h1 

~·olh-!U1111 ucr1\·i11c-.,, y o1t may comac-11/J~ h~U,·wl 7'rcd~ Com111i.,·.tim1 m .'ii'i.Fn;.!IHl.l' nr ~!:.!.ti!.::~-

Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 11 of 12 

 Declaration of Donald Clark 

 4:18-CV-00806-SBA

Clark Att. B-10
~ 60 ~. cool, 

111 I 11 

7016 1370 0001 0090 7578 

rGreenspoon 

Marder 

ATrOR N EYS AT 

One Boc;i Pl.ice 

2255 Glades Road 

Suite 00-E 

Boca Raton.FL JJ4JI 

L AW ~-=II I I . 

:c

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M<1urce11 Esq. ; 

I 

Chnirman I<. Ohlh<1usen, \ {~ 

Fede r,1 1 Trade Com mission GY:_

600 Per111sylv:1nia Avenue,,tJtJ 

Washington, DC .;w&5-fr 

c9o5'60 

?c:~:r-1r::~:c:c:c: i r·c·:::··:: lj, j i1 ,P, jij Ii ii iiii 11Pi11/iiii, i, i1i

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U.S

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Case 4:18-cv-00806-SBA Document 106-2 Filed 04/19/18 Page 12 of 12 

 Declaration of Donald Clark 

4:18-CV-00806-SBA

Clark Att. B-11
Case 4:18-cv-00806-SBA Document 106-3 Filed 04/19/18 Page 1 of 3 

Clark Attachment C 
United States of America 

FEDERAL. TRADE COMMISSION 

Washington, D.C. 20580 

Case 4:18-cv-00806-SBA Document 106-3 Filed 04/19/18 Page 2 of 3 

 Declaration of Donald Clark 

4:18-CV-00806-SBA

Clark Att. C-1

Consumer Response Center 

March 15, 2017 

Robby H. Birnbaum 

Trade Center South, Suite 700 

100 W. Cypress Creek Road 

Fort Lauderdale, FL 33309 

FTC Ref. No. 14016278 

Dear Mr. Birnbaum: 

Thank you for your recent correspondence to Chairman Maureen Ohlhausen on behalf of the 

aggressive and unfair consumer practices by FedLoan, has been forwarded to the Consumer 

Response Center (CRC) for a reply. 

The FTC works for consumers to prevent fraudulent, deceptive and unfair business practices and 

to provide information to consumers like you to help spot, stop, and avoid them . . Under the Code 

ofFederal Regulations, Section 2.3 the FTC policy as to private controversies, state that the FTC 

acts in the public interest but is not able to intervene in individual disputes .. 

While the FDCP A and the FTC Act authorizes the FTC to investigate and take law enforcement 

action against debt collectors that violate those statues; you should be aware, that in July 2011 , 

changes were enacted to the FDCPA, under the Dodd-Frank Wall Street Reform and Consumer 

Protection Act. 

These changes established the creation of the Consumer Financial Protection Bureau (CFBP), an 

independent agency with the authority to implement and enforce Federal consumer financial law. 

These changes also gave certain shared responsibilities and authorities to the CFPB to protect 

consumers under the FDCP A and require the FTC and CFPB share consumer complaint 

information. 

The Consumer Financial Protection Bureau (CFPB) was given authority to directly handle 

individual consumer complaints. Through its Consumer Complaint and Dispute Resolution 

Process, the CFPB directly brings consumer concerns to the attention of companies, and assists 

in addressing their complaints. For this reason, we forwarded your complaint tb that office. If 

you have not done so, you should contact their office. Their contact information is as follows: 
Financial Protection Bureau 

P.O. Box 4503 

Iowa City, Iowa 52244 

Phone: 1(855) 411 -2372 

www.consumerfinance.gov 

We appreciate your bring your concerns to our attention. Your complaint record has been 

updated in our secure online Consumer Sentinel database, which is jointly used by the FTC and 

the CFPB, as well as thousands of civil, and criminal law enforcement authorities worldwide. 

Sincerely, 

Consumer Response Center 

Case 4:18-cv-00806-SBA Document 106-3 Filed 04/19/18 Page 3 of 3 

 Declaration of Donald Clark 

4:18-CV-00806-SBA

Clark Att. C-2