Going to college can be a very nerve-wracking experience for both aspiring children and their parents.
One should take care of many things, from ensuring SAT scores up to par with admission standards to tuition and other financial factors.
This can be a very stressful time for anyone, and thus any form of relief is highly appreciated and welcomed by many who are overwhelmed with the whole ordeal.
Some of them are useful, while some just allegedly rip off of these very vulnerable groups of people, counting on some form of help to come to their side.
One of these companies that have been allegedly scamming its customers has been handed out a partial summary judgment by a court in relation to their misdeeds.
In late January, a United States District Court Judge in California decided that Global Financial Support Inc. was tricking incoming college students as well as their parents into believing that the business entity is working with authorities with regards to student loan programs and that they are affiliated with different universities in the country.
The case was filed by the Consumer Financial Protection Bureau (CFBP) against Global Financial Support Inc. and its CEO Armand Aria.
Authorities from the CFBP claim that the company is conducting fraudulent activities.
They added that the company’s modus operandi was this: they offer their services to would-be college students and their parents in order to ease their financial worries when it comes to college tuition.
They ask for a fee in exchange for their services, wherein customers expect to receive valuable information regarding useful tuition fee packages and support mechanisms to help them get through the experience.
Nevertheless, they only ended up handing out generic and publicly available pieces of information that are considered useless for the paying customer.
Richard Cordray, Director of CFBP, shared in a statement that many people are believed to have fallen for this scheme with the company being able to con millions of dollars out of these helpless individuals.
Additionally, authorities contend that many customers were also exploited through various means, such as pressuring students and giving out fake deadlines in order for them to avail their services.
The court’s decision also states that the company would have to pay a $10 million penalty to the authorities.
Global Financial Support Inc. is also ordered to cough up $4 million to students and parents who got scammed of their evil practices.
On the other hand, the court sided with Global Financial Support Inc.’s argument defending the informative material they handed out to its clients in 2016.
The case, widely known as the Global Financial CFBP Lawsuit, is officially tagged as Consumer Financial Bureau v. Global Financial Support Inc. et al. With Case No. 3:15-cv-024440, it is filed in the United States District Court for the Southern District of California.
Judge Gonzalo Curiel is the judge sitting on the case.
About Global Financial Suppot Inc.
Known as Student Financial Resource Center and College Financial Advisory amongst its clients, Global Financial Support Inc. offers its services to help out anxious incoming college students as well as their parents in their tuition fee concerns.
However, federal authorities have accused the company of allegedly scamming them through its illegal actions.
As of writing, the company is believed to have been pushed out of business.
Editor’s Note on Global Financial Support Inc. Scam:
This article is published to inform you of the latest court decision in favor of students and parents who were allegedly scammed by Global Financial Support Inc. through its Tuition Support Program.
What are your thoughts on this piece? Have you availed the program before and felt that you were deceived too?
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