7,000 Student Loan Borrowers Can Get $3.5 Million Refund From A Debt Relief Company; Check It Here!

Thousands of student loan borrowers will receive a refund totaling over $3.5 million after a debt relief company was found guilty of scamming them, Business Insider reported.

7,000 Student Loan Borrowers Can Get $3.5 Million Refund From A Debt Relief Company (PHOTO: Yahoo News)

7,000 Student Loan Borrowers Will Be Expecting A Refund

The Consumer Financial Protection Bureau (CFPB) cracked down on Timemark Solutions, accusing the company of violating the Telemarketing Sales Rule by charging student loan borrowers illegal advance fees to reduce their federal student loan balances. This action occurred even though the Education Department provided such services for free.

Between 2016 and October 2019, Timemark Solutions utilized telemarketing campaigns to persuade individuals with federal student loans to pay up to $699 in fees to file paperwork for reducing or eliminating their monthly payments through consolidation, forgiveness, or income-driven repayment plans. The CFPB found that the company violated the rule against requesting fees for debt-relief services before the consumer had made at least one payment under the new arrangement.

A settlement was reached between the CFPB and Timemark in July 2020. Refund checks will soon be sent to eligible student loan borrowers, facilitated by Epiq Systems, which has been contracted by the agency for payment administration. Student loan borrowers who believe they are eligible but did not receive a check can submit a claim on CFPB-Timemark.org, and those with refund-related inquiries can contact [email protected] or call 866-991-0913.

READ ALSO: Student Loan Borrowers Could Benefit From These Fines; Check This Out!

A Step To Protect Student Loan Borrowers

The CFPB and the Federal Trade Commission (FTC) have been closely monitoring student-debt-relief companies for fraudulent behavior in recent years. These actions aim to protect student loan borrowers from deceptive practices and illegal fees. Following the Supreme Court’s decision to strike down President Biden’s student loan forgiveness plan, the FTC issued a warning to student loan borrowers, alerting them to potential scams that may arise during the confusion surrounding loan payments.

To avoid falling victim to scammers, the FTC advises student loan borrowers to never pay for assistance with their student loans, refrain from sharing their Federal Student Aid login information, and exercise caution when contacted by anyone promising debt relief, even if they claim to work with the Education Department. Staying vigilant and informed is essential in safeguarding against fraudulent schemes.

READ ALSO: Student Loan Borrowers Rejoice As The Secure 2.0 Act Brings Relief And Retirement Savings Opportunities