37,844 student-loan borrowers sharing $3.3 million in refunds
Almost 40,000 student-loan borrowers are in line for refunds in connection to what the Federal Trade Commission described as a student loan debt relief scheme.
According to a statement by the FTC, 37,844 people who paid money to Arete Financial Group qualify for checks totaling $3.3 million in connecting to a scheme that charged illegal upfront fees for debt relief but failed to deliver. The FTC sued Arete Financial and related companies and the defendants agreed to settle.
According to the lawsuit, defendants pretended to be affiliated with the Department of Education, falsely promising to reduce or eliminate monthly student loan payments but then charged consumers illegal upfront or recurring monthly fees.
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“Defendants promised consumers that in exchange for the payment of upfront fees and subsequent monthly fees, they would reduce or eliminate consumers’ student loan balances,” the FTC said in a statement. “However, Arete Financial regularly failed to reduce or eliminate consumers’ loan balances or monthly payments.”
The settlement requires the defendants to provide refunds and banned them from the student loan debt relief industry.
The FTC has determined the customers who are eligible for refunds and they will be receiving a check. The amount of refund will depend on how much FTC is able to collect and how many people lost money.
You can find more information here or by calling 855-678-0558.