Over 22K Student-Loan Borrowers To Receive $9M In Refunds After Being Charged Up To $800 'Illegal' Fees: Watchdog

A hefty sum of over $9 million will be given back to student-loan borrowers scammed by Ameritech Financial, as declared by the Federal Trade Commission (FTC) and Department of Justice (DOJ), Business Insider reported.

Ameritech Financial, run by Brandon Frere, was accused in 2018 of faking affiliations with the Education Department and charging borrowers up to $800 in “illegal up-front fees” for debt relief services.

See Also: Biden Announces $130M Student Debt Forgiveness Plan For CollegeAmerica Students

Ameritech misled borrowers, stating their monthly membership fees, ranging from $49-99, would contribute towards their loan balances. The company was banned from offering debt relief services by the FTC in 2020, the same year Frere was sentenced to 42 months prison time.

This resolution would cover about 22,562 borrowers who were duped by Ameritech’s services. Any queries regarding the refunds can be addressed to Rust Consulting, contracted by the FTC to handle payments.

The Education Department has warned borrowers to be skeptical of efforts requiring payment for debt relief services, as aid with repayment is also available free of charge from the government.

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Image Credits – Brooke Cagle on Unsplash