In The News: FTC to pay more than $5.4 million to people scammed by student loan debt relief fraudsters

October 3, 2019

By Jeanette Settembre, Fox Business

The fraudsters, who made off with at least $20 million, were required to pay up under a 2018 settlement with the FTC, the organization announced in a press release Monday.

The FTC alleged that Los Angeles-based companies using names like Alliance Document Preparation LLC, and Post Grad Aid, bilked millions of people trying to reduce or eliminate their student loan debt. They used social media platforms like Facebook to market their fake relief programs and misrepresented that they were affiliated with the U.S. Department of Education or the loan servicers. The defendants falsely claimed that consumers who paid an upfront fee of up to $1,000 were qualified or approved for permanently reduced monthly payments or loan forgiveness.

The FTC is sending 39,734 checks to people who lost their money, totaling $136.48 each on average. The checks will expire after 60 days, the FTC said, noting: “The FTC never requires consumers to pay money or provide account information to cash a refund check.”

Borrowers have reported receiving emails, letters and phone calls offering them financial relief from their federal student loans. In most cases, these companies don’t offer any relief at all and just take people’s money. One of the most common ways fake companies try to swindle those saddled with debt is by claiming they’ll get rid of student loans without the person having to pay it back, for a small fee. The only legitimate reasons for not paying student loans may include permanent disability, identity theft or in some cases, school closure.

America’s $1.6 trillion student loan crisis has some presidential candidates proposing to cancel student debt and make public college free. And state legislatures are cracking down on student-loan companies.

To Read More, Click Link Below:

8 thoughts on “In The News: FTC to pay more than $5.4 million to people scammed by student loan debt relief fraudsters

  1. A veces los comentarios se quedan en el tintero. Me llamó la atención la cantidad de billones de de dólares en préstamos estudiantiles. Eso dice de lo caro que resulta hacerse profesional. Luego viene lo de la estafa. Tardaron en darse cuenta las autoridades en darse cuenta.Y también los estafados. Por lo menos se hizo justicia al devolver ese importante suma de dinero. Un excelente artículo y qué bueno que te puedo responder en español. Lucho una barbaridad con el traductor. Es un placer leerte. Amplio mis conocimientos. Saludos.

    Liked by 2 people

    • Gracias por responder y soportar la batalla con el traductor. Jaja! 🙂 A través de tus publicaciones y tus comentarios, estoy mejorando mi español. Es una situación de ganar-ganar para los dos. Me alegra que los estudiantes se despierten a esta situación. Mis hijos no tendrán préstamos estudiantiles, los apoyaré de todas las formas posibles. Incluso si eso significa decirles que persigan un oficio. Las personas que trabajan como plomeros, camioneros y electricistas se ganan la vida.

      Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.