Refunds for Over 22,000 Targeted in Ameritech Financial Student Loan Forgiveness Scam
With the assistance of the Federal Trade Commission and the Department of Justice, victims of Ameritech Financial’s student loan debt relief scam will eventually receive refunds.
AmeriTech Financial was headquartered in California as well as operated as American Financial Benefits Center under the leadership of Brandon Frere.
The FTC announced in a press release issued today that refund checks totaling $9 million will be sent to 22,562 individuals.
In accordance with the complaint, the FTC estimates that Ameritech Financial defrauded consumers out of $28 million.
Ameritech Financial allegedly misled consumers into believing they were qualified for federal programs that would permanently lower their monthly loan payments to a set amount or forgive their loans.
How Does The Student Loan Scam Work?
Based on the FTC’s complaint, Ameritech Financial provided mailers to consumers that falsely claimed they qualified for federal programs that would result in total debt forgiveness or perpetually reduce their monthly payments on loans to a fixed low amount.
The company allegedly charged up to $800 in illegal initial charges to consumers, and then charged between $100 and $1,300 in advance fees to enroll individuals in “financial education.”
Ameritech Financial also charged a fee for membership every month varying from $49 to $99 for the duration of the loan, which typically lasted between 10 and 25 years.
The Department of Justice issued a criminal case against Frere and his companies in December 2018, in which he pled guilty to two counts of wire as well as mail fraud and agreed to forfeit funds.
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How Do I Obtain My FTC Refund?
In July of 2020, he received a prison term of 42 months. He had to peruse every victim impact statement submitted to the court.
Checks are mailed to consumers, who must redeem them within 90 days of receipt. Those without an address on file will receive a PayPal payment from the [email protected] email address.
The FTC does not demand refund applicants to pay money or give account information.
Consumers with concerns about the refund procedure can reach the refund administrator, Rust Consulting, Inc., at 1-833-579-3126 or go to the FTC website’s frequently asked questions page.
Source: USATODAYviaMSN
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