However, the defendants failed to fulfill their promise to help reduce the consumers’ monthly student loan payments, eliminate all or a substantial portion of their federal student loan debt.
In addition, Arete Financial Group and its co-defendants lied to consumers that they will assume responsibility for servicing their student loans. The defendants also failed to apply consumers’ monthly fee payments to their student loans. As a result, consumers had to pay more interest and other negative consequences.
The FTC alleged that the defendants illegally obtained around $43 million in revenues from consumers.
Details of the settlement
On Thursday, the FTC entered an order stipulating that Arete Financial and its co-defendants agreed to settle without admitting or denying the charges against them.
They agreed to the Commission’s order permanently prohibiting them from advertising, marketing, promoting, offering for sale, or selling any debt relief product or service.
Additionally, the defendants agreed to the FTC’s order prohibiting them from violating the Telemarketing Sales Rule.
