The Federal Trade Commission (FTC) has taken action against the operators of Mission Hills Federal and Federal Direct Group for tricking student loan borrowers out of their money. The operators charged illegal upfront fees and falsely claimed to lower consumers' monthly loan payments. This creates an opportunity for malicious actors to exploit borrowers seeking debt relief.
The action follows a 2019 complaint the FTC made against the operators of Mission Hills Federal and Federal Direct Group, alleging the organizations have been tricking student loan borrowers out of their money since 2014. Fraudsters"tricked students into paying hundreds to thousands of dollars in illegal upfront fees and pretended to lower consumers' monthly student loan payments," the FTC said in a press release.
Additionally, the operators claimed to take over the servicing of consumers' loans and thus, often pocketed consumers' monthly payments, the agency said., so it's not surprising that many borrowers are eager to take any chance they have to lower or eliminate their balances.Unfortunately, that also creates a ripe opportunity for malicious actors to take advantage of those looking for ways to ease their student debt burdens.This isn't the first time the FTC has issued refunds for these kinds of scams. Last August, the agency, along with the Department of Justice,to victims of an organization known as Ameritech Financial that operated a similar student debt relief schem
FTC Student Loan Scam Debt Relief Borrowers
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