Student Loan Tip! Federal Trade Commission (FTC) Sending Refunds to People Scammed by Student Debt Relief Company Arete. Arete Financial was sued by the FTC for lying to borrowers about being affiliated with the Department of Education, falsely promising to reduce or eliminate student loan payments, and charging borrowers upfront or recurring fees. According to the FTC, the company was running a debt relief scam – a frustrating and common scheme where a company offers debt relief to student loan borrowers, charges expensive fees, and never provides the promised relief. The FTC will be issuing refund checks to 37,844 borrowers harmed by the company. If you receive a check as part of this settlement, you should cash it within 90 days. To learn more, visit the FTC’s page on recent refund cases.
You should never pay a company to help you settle your student loan debt or reduce your payments. Debt relief companies frequently charge expensive fees and upfront costs and never deliver on the promises they make to reduce your debt. If you believe you have been the victim of a debt relief scam, file a complaint with the FTC and CFPB.
Nassau Suffolk Law Services is a participating agency in the EDCAP (Education Debt Consumer Assistance Program) Network. EDCAP helps New Yorkers navigate the student loan system regardless of the type of education debt, federal or private. EDCAP offers free, one-on-one counseling with our student loan experts who only have your best interests at heart. Nassau Suffolk Law Services can also assist when a defendant is being sued on a higher education debt matter. Please contact the EDCAP helpline at (888) 614-5004 or be screened for legal services by Nassau Suffolk Law Services at (516) 292-8100.
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