Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Student loan scheme operator barred by FTC from debt relief industry, telemarketing, (Jul 22, 2026)

By Joe Cox, J.D.

A proposed consent order would end the Superior Servicing LLC litigation.

The FTC announced a proposed order to resolve litigation surrounding an alleged Superior Servicing LLC student loan scheme that bans Dennise Merdjanian from debt relief industry work and telemarketing. In November 2024, the FTC sued Nevada-based Superior Servicing and Merdjanian alleging that agents of Superior Servicing and related companies pretended to be affiliated with the U.S. Department of Education, falsely promised student loan forgiveness, and ultimately taking over $45.9 million from student loan borrowers. The order with Merdjanian and default pleadings against the corporate defendants should conclude the litigation, the FTC said in a press release (Federal Trade Commission v. Superior Servicing LLC et al, No. 2:24-cv-02163-GMN-MDC (D. Nev. July 21, 2026)).

History of litigation. During the litigation, the FTC added Eric Caldwell and David Hernandez to the suit as co-defendants with Merdjanian. In September 2025, the claims against Caldwell and Hernandez were resolved, with Caldwell’s order banning him from engaging in telemarketing, and Hernandez’s order prohibiting him from violating the Telemarketing Sales Rule.

Last month, the FTC won a default judgment against Superior Servicing LLC and related companies for $45.96 million The June 26 order found that the companies deceived consumers into paying hundreds of dollars for student loan debt-relief services that were made up, not as described, or never materialized. In the allegations of its complaint, the FTC had alleged that Superior Servicing promised consumers that they could pay the companies for lower student loan payments, loan forgiveness, payment application to their loans, Department of Education affiliation, or transfer of servicing responsibility. The court found that the companies did not seek or deliver repayment plans or forgiveness, did not apply consumers’ payments to student loans, were not affiliated with the Department of Education or approved servicers, and did not take over loan servicing.

Extensive restriction was also entered in regard to the corporate defendants to enjoin them and their agents from further debt servicing. In regarding the nearly $46 million judgment amount, the order permits money the agency receives to be placed in a fund for consumer relief and redress administration. If direct redress is impracticable or money remains, the FTC may use the funds for related relief and then deposit unused money in the Treasury.

Current Order. The proposed order against Merdjanian, in which she neither admits or denies any of the allegations made by the FTC, imposes substantial penalties. Most notably, Merdjanian is estopped from advertising, marketing, promoting, offering for sale, or selling any secured or unsecured debt relief product or service, from engaging in any telemarketing, misrepresenting commercial information, or impersonating any governmental entity.

Merdjanian will also be rendered jointly and severally liable for the full $45,959,012.69, but due to her inability to pay the full amount, Merdjanian is ordered to pay $184,731.71, with the remaining portion of the judgment against her being suspended. Merdjanian will also surrender to a receiver any interest she holds in the involved companies and will transfer title in her automobile to the receiver. The suspension of the remaining portion of the judgment against Merdjanian will be lifted if the FTC learns that she failed to disclose any material asset.

Merdjanian will be required to tender a sworn compliance report within a year of entry of the judgment and for the next 20 years, will then have to submit a compliance report indicating any substantial changes related to the order.

Companies: Superior Servicing LLC

News: ConsumerProtection FederalTradeCommissionNews NevadaNews