The FTC alleges in paragraph 23 that Ameritech did not explain or advertise any sort of monthly obligation to any service. Meaning, consumers had no idea that they were going to be required to pay some sort of fee related to the mailer. Consumers were urged to call a toll free number where thy spoke with a sales representative.
The sales representative would give consumers a new monthly loan amount and promise that any amount left on the student loan would be forgiven. The FTC alleges that Ameritech’s representatives did not tell consumers the truth and inflated their savings.
Consumers Paid Illegal Up-front Fees and Monthly Membership Fees
According to the complaint, Ameritech charged consumers illegal up-front fees for their “help” for student loan debts. Consumers were then charged between $49 and $99 each month. The FTC alleges that Ameritech didn’t use that money to pay on student loans on behalf of their clients. Instead, their clients received services unrelated to their student loan debt such as “key ring & luggage protection.” (Exhibit G)