FTC and DOJ Issue $9 Million in Refunds for Student Loan Debt Relief Scam

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) are distributing over $9 million in refunds to consumers who fell victim to a student loan debt relief scheme operated by Ameritech Financial. The scheme involved illegal upfront fees and false claims about monthly membership fees. Brandon Frere, the operator of the scheme, was convicted of criminal charges. The refunds are a result of settlements reached before the Supreme Court ruled that the FTC lacks authority to seek monetary relief in federal court. The FTC has called on Congress to restore its ability to provide refunds to consumers.