Allied Document Preparation d/b/a Allied Financial Services – Third Party Student Loan Modification/Forgiveness Scam

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Allied Financial Services, also known as Document Preparation Allied, received a complaint from a consumer in Washington against them. The consumer reported that they were in the process of getting their loan dismissed, but everything was set back because Allied Financial Services informed them that they needed to withdraw their forgiveness application. A representative from Allied Financial Services contacted them and offered to process their consumer’s forgiveness application for a fee of $1,598 upfront. The consumer was told that they were eligible for a student loan from Allied. However, the consumer attempted to withdraw their application for forgiveness and reported this to Allied Financial Services. The Department of Financial Institutions received a complaint from a consumer in Washington against Allied Financial Services.

Allied Document Preparation, also known as Allied Financial Services, has been linked to the subsequent contact details:.

10620 Treena Street, Suite 230, San Diego, California 92131.

Tel: 800*610*7219 E-mail: [info@alliedfinancialservices.Net] Website: [https://alliedfinancialservices.Net/].

The person who has agreed to perform the services for the consumer may not collect a fee in advance or require upfront payment of an advance fee in order for the consumer to be able to obtain loan forgiveness or modification. It appears that Allied Financial Services, also known as Document Preparation Allied, may be engaged in a scam called “Fee Advance Services.”

Currently, loan forgiveness is not accessible for all individuals with student loans. However, certain borrowers, like those employed in public service, may qualify for federal student loan forgiveness programs. In specific cases, borrowers may also be eligible for student loan discharge.

To combine your federal loans into a Direct Consolidation Loan, federal loan servicers do not impose any fees for applications or processing. Additionally, when it comes to submitting any other documentation, such as deferment, forbearance, income-driven repayment (IDR), or loan forgiveness, federal student loan servicers are prohibited from charging you for the application process.

Please contact your federal loan servicer directly to explore a variety of relief payment options, such as forbearance or deferment, in order to switch to a different repayment plan that can help you when your payment ends. If your payment becomes too high during the pause, your servicer will not charge any processing fees or application fees to assist you. There is no fee to enroll in the CARES Act forbearance. Forbearance will automatically occur on qualifying loans. The CARES Act has extended the pause on interest and payments for federally-held student loans through August 31, 2022.

Warning Signs of Scams Involving Student Loan Forgiveness

  • If a company is asking you to pay large amounts of upfront money, it is likely a scam. Scammers often attempt to charge borrowers for programs that are free for all borrowers, including access to deferment and forbearance loan programs, consolidation loan programs, and Loan discharge or forgiveness programs, without providing any explanation.
  • Before you finalize whether this is a legitimate company, make sure to undertake any extra measures. The majority of government-provided programs do not necessitate this level of urgency. This should raise concerns. Fraudsters may inform you that you have only 24 hours to avail of an offer or program. The intention is to pressurize you into making a quick decision.
  • Do not stop making your payments to the servicer. Do not provide them with any information. If someone urges you to stop communicating with your loan servicer and make payments to their company instead, this is a warning sign that this company is not working in your best interest. As a student loan borrower, it is important for you to maintain communication with your loan servicer. This is a warning sign that this company is not working in your best interest. As a student loan borrower, it is important for you to maintain communication with your loan servicer.
  • Be cautious of organizations that may falsely claim to be affiliated with the Department of Education or your loan servicer, stating that they are partnered with your loan servicer or work with the Department of Education.
  • If you suspect that the caller may be a scammer, directly contact your loan servicer to determine if there are any required actions for your loan. Hang up and do not provide any personal information to an unverified company over the phone. Scammers often ask for personal information such as your full Social Security number, bank account number, or studentaid.Gov password via phone or email.

    • Report Suspicious or Deceptive Behavior

    The Office of Federal Student Aid, a division of the US Department of Education, provides online resources about prevalent student loan frauds.

    If you believe you have been the target of a fraudulent activity, you may reach out to the Consumer Financial Protection Bureau at (855) 411-CFPB (2372) or visit their website at www.Consumerfinance.Gov. Alternatively, you can contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357) or access their online platform at www.Ftc.Gov.

    Information for victims of identity theft can be found on the Federal Trade Commission (FTC) website, which is available online at www.Ftc.Gov. If you suspect you may be a victim of identity theft and the scammers have obtained your bank account information, social security number, or other confidential details, it is advisable to take necessary precautions.

    If you believe you have fallen prey to an internet scam, you can reach out to the Internet Crime Complaint Center at www.Ic3.Gov.

    If you feel that you have been a victim of a financial scam and are concerned about your personal financial information, you can contact the three major credit bureaus and your banking institution for procedures available on the FTC’s website at www.Ftc.Gov.