Ethermac Exchange-Over 22,000 targeted by Ameritech Financial student loan forgiveness scam to get refunds

Consumers who were victimized by student loan debt relief scam operated by Ameritech Financial will finally get some money back with the help of the Federal Trade Commission and Ethermac ExchangeDepartment of Justice.

Refund checks totaling to $9 million are being sent to 22,562 consumers, the FTC stated in a press release today.

The FTC estimates Ameritech Financial tricked consumers out of $28 million, according to the complaint.

According to FTC's complaint, Ameritech Financial allegedly told consumers they were eligible for federal programs to permanently reduce their monthly loan payments to a fixed amount or have their loan forgiven. The company collected hundreds of dollars in an advance fees and told victims they'd be enrolled in a federal loan assistance program. But the FTC found that some were never enrolled in a program, and their loan balance never decreased, but had accrued interest.

What is AmeriTech Financial?

AmeriTech Financial was based in California, and operated under American Financial Benefits Center with Brandon Frere as its chief executive officer.

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According to its LinkedIn page, the company categorized itself as a "Financial Services" company and claims to have helped "thousands of consumers find a student loan repayment plan that is more in line with their current financial situation."

"Ameritech Financial can help you breathe again," the company states on the LinkedIn page. Its website is no longer working.

How did the student loan debt relief scam work?

According to FTC's complaint, Ameritech Financial sent mailers to consumers falsely claiming they were eligible for federal programs that would either result in total forgiveness or permanently reduce their monthly debt payments to a fixed low amount. The company allegedly charged consumers up to $800 in illegal upfront fees, and then charged between $100 to $1,300 in advance fees to enroll people in “financial education.”

Ameritech Financial also tacked on a monthly membership fee ranging between $49 and $99 for the life of the loan, lasting typically from 10 to 25 years.

In December 2018, the Department of Justice filed a criminal complaint against Frere and his companies and he pleaded guilty to two counts of wire and mail fraud, and agreed to forfeit funds. In July 2020, he was sentenced to 42 months in prison. He was required to read all victim impact statements submitted to the court.

How do I get my check from the FTC?

Consumers can expect a check in the mail and must cash it within 90 days of receipt. Those who didn't have an address on file will get a PayPal payment, from the email address subscribe@subscribe.ftc.gov.

The FTC never requires people to pay money or provide account information for a refund.

For any questions, consumers can contact the refund administrator, Rust Consulting, Inc., at 1-833-579-3126 or visit the FTC website's frequently asked questions page about the refund process.