FTC Sends More than $1 Million in Refunds to Victims of Student Loan Debt Relief Scam

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The Federal Trade Commission is mailing checks totaling more than $1 million to individuals who lost money to a student loan debt relief scam.American Student Loan Consolidators and BBND Marketing, which did business under other names including United Processing Center, settled FTC allegations that the companies’ operators pretended to be affiliated with the U.S. Department of Education or with loan servicers to trick consumers into paying hundreds of dollars in illegal upfront fees for help with their student loans. The FTC alleged that the defendants falsely promised to forgive student loans, lower monthly payments, and reduce interest rates. The FTC is mailing 41,048 checks to victims of the scam. The FTC never requires people to pay money or provide account information to cash a refund check. If recipients have questions about the refunds, they should contact the FTC’s refund administrator, Rust Consulting, Inc., at 1-877-251-1450.The FTC’s interactive dashboards for refund data p…

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