Relief is on its way for those who fell prey to a student loan debt aid con trick by Ameritech Financial, courtesy of the Federal Trade Commission and the Department of Justice.
There will be refund checks worth $9 million divided among 22,562 fraud victims. This was reported by the FTC in a press statement.
Based on FTC’s calculations, customers were swindled of a whopping $28 million by Ameritech Financial.
As indicated by the FTC’s lawsuit, Ameritech Financial falsely informed consumers of their eligibility for government-backed fixed repayment amounts or loan forgiveness programs. The company took upfront fees from unsuspecting clients and assured them of enrollment in mortgage relief programs, however, some clients weren’t enrolled and their loan balance and interest rates stayed unchanged.
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Who Exactly is AmeriTech Financial?
AmeriTech Financial is a Californian company that operated under the brand name of American Financial Benefits Center with Brandon Frere as the CEO.
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According to their LinkedIn, they label themselves as a “Financial Services” company which claims to have supported “thousands of clients in revamping their student loan repayment options that better suit their present financial capacity”.
Their LinkedIn states: “Ameritech Financial can assist you in resuming normalcy.” Note that their website is no longer operational.
How did the Student Loan Debt Relief Fraud Occur?
According to the FTC’s lawsuit, Ameritech Financial duped consumers by mailing them false information stating their eligibility for loan forgiveness or permanent loan repayment reduction through federal programs. The company reportedly extracted upfront fees amounting to $800, and also took an additional $100-$1,300 for “financial education” enrolment.
Ameritech Financial also included an ongoing monthly membership fee ranging from $49 to $99, for a period typically lasting 10 to 25 years.
In December 2018, criminal charges were filed against Frere and his businesses by the Department of Justice. He admitted guilty of mail and wire fraud, and forfeited funds. He was then sentenced to three and a half years in prison in July 2020 and was tasked with reading every victim impact letter submitted to the court.
How Do I Receive My FTC Refund?
Victims will receive a physical check which they need to cash within 90 days. For those lacking an updated address on record, they will receive a PayPal payment from the email `subscribe@subscribe.ftc.gov`.
Be informed that FTC never demands payment or account information to process refunds.
For any inquiries in relation to this, consumers can communicate with the refund manager, Rust Consulting, Inc., at 1-833-579-3126, or refer to the FTC’s website’s FAQ page about the refund procedures.
