Read previewThousands of student-loan borrowers are getting checks in the mail after paying companies accused of scamming them for debt relief services.
The Federal Trade Commission on Wednesday announced it would be sending over $4.1 million in refunds to 27,584 borrowers who gave money to South Dakota corporations Mission Hills Federal and Federal Direct Group.
According to the press release, the FTC said the companies "lured consumers with fake loan forgiveness claims and pocketed their money."
Advertisement"Moreover, because Defendants have failed to apply most or any of consumers' payments to their student loans, many consumers have accrued additional capitalized interest on the balance of their loans," the complaint said.
Those with questions about the payments can contact JND Legal Administration — the company overseeing FTC's refunds — at 844-566-0108, or seek information through the FTC's refund information website.
Persons:
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Organizations:
Service, Federal Trade Commission, Wednesday, Mission Hills Federal, Federal Direct Group, Business, FTC, Court, Central, Central District of, —, Consumer Financial, Education Department
Locations:
South Dakota, Central District, Central District of California, California, reportfraud.ftc.gov