22,000 student loan borrowers receiving $9 million in refunds: Do you qualify?
More than 22,000 student loan borrowers will be receiving $9 million in refunds to people who lost money in what federal officials said was a scheme promising loan relief.
The Federal Trade Commission and Department of Justice announced refunds are for those who lost money to Ameritech Financial, a student loan debt relief scheme operated by Brandon Frere who was ultimately convicted in criminal charges in connection to the matter.
The FTC is sending payments to 22,562 consumers, most of whom will receive a check in the mail. Eligible consumers with no address on file will receive a PayPal payment. The average payment will be $342. Six-hundred-eighty-two people in Alabama will be receiving refunds for a total of $301,954. You can see more information here on the payments.
According to the FTC, Frere and his companies claimed to be affiliated with the U.S. Department of Education and charged up to $800 in illegal up-front fees. They also falsely told people their membership fees, some as high as $99 per month, were going towards their loan balances. In 2020, the FTC announced that Frere and his companies were banned from providing debt relief services and from violating Telemarketing Sales Rules.
In 2018, the DOJ brought criminal charges against Frere and his companies. He eventually pleaded guilty and was eventually sentenced to 42 months in prison and ordered to forfeit some $8.9 million in assets.