FTC Sends Checks to Borrowers Impacted by Debt Relief Scam

Over 14,000 borrowers will soon receive checks from the Federal Trade Commission restoring a total of $822,000 lost to a student loan debt relief scam called Student Advocates.

Last year, Student Advocates and the financing company Equitable Acceptance Corporation, which assisted them, settled a complaint filed against them by the FTC. The settlement stated that the two companies had collected illegal up-front fees and falsely promised borrowers that they could lower or eliminate their student loan debt. As a result, Student Advocates was banned from providing debt relief services.