The Federal Trade Commission is channeling over $3.3 million in restitution to victims who fell prey to the deceptive practices of Arete Financial Group, a fraudulent student loan debt relief venture. This company hoodwinked consumers into making prohibited upfront fees under the guise of being associated with the U.S. Department of Education, and by deceptively offering student loan debt relief. In reality, the fraudsters pocketed the payments from consumers without providing the promised relief.
The FTC is issuing refunds to more than 37,800 victims. The receivers of these refunds should deposit their checks within the 90-day window as specified on the check. For any queries about their refund, the consumers are advised to reach out to JND Legal Administration, the refund administrator, at 855-678-0558, or browse through the FTC’s website for a list of common questions about the refund process. The Commission never mandates people to make a payment or disclose their account details to collect a refund.
In November 2019, the FTC filed allegations against Arete Financial and several associated firms for feigning an affiliation with the U.S. Department of Education. They used a range of channels – radio, TV, online ads, and telemarketing calls – to lure consumers into student loan forgiveness, consolidation, and repayment schemes. The offenders assured consumers that they could minimize or eliminate their student loan balances in exchange for upfront fees and ongoing monthly payments. However, Arete Financial consistently failed to decrease or eradicate consumers’ loan balances or monthly payments.
The Commission’s interactive dashboards for refund data provide an extensive, state-by-state overview of refunds in FTC cases. In 2022, the Commission’s interventions led to refunds exceeding $392 million for consumers throughout the nation.
