FTC sends refunds to victims of student loan and mortgage program

FTC

The Federal Trade Commission is sending refunds totaling more than $223,000 to people who lost money through student loans and mortgage debt relief.

The FTC alleged that A1 DocPrep Inc., Streamlined Marketing, and their owner, Horman Ardalan, falsely claimed to be owned by the Department of Education and promised to cut borrowers’ monthly payments or cancel their student loans by exchange of illegal upfront fees, according to the FTC September 2017 Complaint. The FTC also alleged that the defendants targeted struggling homeowners by making false promises that they would provide mortgage relief and prevent foreclosure.

Refunds come from colonies the defendants contacted the FTC, which also bars them from debt relief and telemarketing activities and prohibits them from making false statements or unsubstantiated claims related to other financial products or services.

The FTC sends 136 checks to consumers who have already filed a complaint with law enforcement. The checks cost an average of $1,641 each. People who receive checks must deposit or cash their checks within 90 days as indicated on the check. Recipients who have questions about their checks can call the refunds administrator, Analytics, at 844-695-0454. The FTC never requires people to pay money or provide account information to cash a refund check.

FTCs interactive dashboards for reimbursement data(link is external)
provide a state-by-state breakdown of FTC refunds. In 2020, FTC actions led to more than $483 million in refunds to consumers across the country, but recently the U.S. Supreme Court ruled that the FTC had no power, under of section 13(b), to seek monetary relief in federal court in the future. the The Commission urged Congress to restore the FTC’s ability to recover money for consumers.

The Federal Trade Commission works to promote competition and protect and educate consumers. You can learn more about consumer topics and report scams, fraud and poor online business practices at ReportFraud.ftc.gov. Like the FTC on Facebook(link is external), Follow us on Twitter(link is external), to have consumer alerts, read our blogging, and subscribe to press releases for the latest FTC news and resources.

Priscilla C. Carnegie