The government will send checks to 37,800 student loan borrowers who were sent money to Arete Financial Group, a debt relief company, and were scammed.
FTC said the debt relief company promised debt relief but instead pocketed money from clients
The debt relief company promised student borrowers that they reduce or eliminate consumers’ student loan balances. Yet, Arete Financial Group failed to reduce or remove the loan balances of their consumers.
The Federal Trade Commission alleged debt relief company in 2019, accusing Arete and other debt-relief companies of scamming student borrowers. They gave hope to their client on student-loan forgiveness.
The Federal Trade Commission refunded student borrowers scammed by a debt relief company. For example, last December, the FTC gave checks to another 23,000 student borrowers after it accused five debt relief companies of illegally charging debt relief fees and distorting interest rates.
Read Also: Biden Rejects A Bill Repealing The Student Loan Forgiveness Program
Scammers choose student borrowers because they want their loans forgiven easily
Americans want their student loan debt forgiven, and with uncertainty, they are the prospective victims of scammers.
These lawsuits will end student loan debt relief companies that made junk fees, unwanted calls, and financial exploitation to student borrowers.
Read Also: President Biden Vetoes Bill Targeting $400 Billion Student Loan Forgiveness Plan