Automatic Funds Transfer Services, Inc.

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Federal Trade Commission, Plaintiff, v. Automatic Funds Transfer Services, Inc., a corporation; and Eric Johnson, Individually and as an officer of Automatic Funds Transfer Services, Defendants.
FTC Matter/File Number:

192 3142

Civil Action Number:

1:21-cv-02932

Federal Court:
District of Columbia

Case Summary

The Federal Trade Commission obtained an order permanently banning a payment processor that facilitated a fraudulent student loan debt relief scheme from processing debt relief payments. The order also requires the company and its owner to surrender $500,000 to the FTC for consumer redress.

The FTC’s complaint against Automatic Funds Transfer Services, Inc. (AFTS) and its owner, Eric Johnson, alleges that AFTS processed at least $31 million in consumer payments for a fraudulent student loan debt relief scheme sued by the FTC in 2019. The debt relief scheme used numerous names, including The Student Loan Group (SLG).