Ameritech Financial along with its officer Brandon Frere were accused of taking illegal up-front fees in a student loan debt relief scam as part of the FTC’s Operation Game of Loans. In the federal complaint filed on February 7, 2018, Ameritech is accused of using deceptive business practices since 2014 and illegally charging consumers.
Deceptive Marketing Practices Used by Ameritech
Starting at paragraph 22 of the complaint, the FTC alleges that Ameritech used personalized direct mail pieces (also included as exhibits) to inform consumers that they were pre-qualified for student loan payment reductions through the “Student Loan Reform Act.” The mailers also gave outrageous reductions. In fact, Exhibit A-1 listed that the recipient could have their $1,110 monthly payment reduced to “as low as $68” per month. The flyers also informed some recipients that they could receive loan forgiveness for federal student loans under the “Health Care and Education Affordability Reconciliation of Act of 2010.” (Exhibit D-1)