FTC Sending Refunds To Student Loan Debt Relief Scam Victims
This week, the Federal Trade Commission announced it was mailing checks totaling more than $1 million to individuals who had been ripped off as a part of a student loan debt relief scam. American Student Loan Consolidations and BBND Marketing which was doing business as United Processing Center and other names settle FTC allegations that the companies’ operators pretended to have affiliations with the United States Department of Education or with loan services.
It allegedly did so to trick consumers into paying hundreds of dollars in illegal upfront fees to help with their student loans. Furthermore, the FTC alleged that the operators had falsely promised to forgive student loans, lower monthly payments, and reduce interest rates. Thanks to the settlement, the FTC will be mailing 41,048 checks to victims.
In 2019, actions carried out by the FTC led to more than $232 million in refunds for consumers across the country.