Operators of Student Debt Relief Scheme Fined $43.3 million

Student Debt in US Dollars
Debt in US Dollars

The operators of a student debt relief scheme must pay $43.3 million in alleged credit fraud fines, according to a ruling by the Federal Trade Commission.

The FTC alleged that the operators charged illegal upfront fees. It also alleges that the operators made false promises to consumers struggling with student loan debt.

The complaint was filed against Arete Financial Group and other significant companies. It named Carey G. Howe, Anna C. Howe, Shunmin Hsu, Ruddy Palacios and Oliver Pomazi as defendants.

Financial Freedom

Arete Financial Group's student debt relief scheme claims to offer customers "financial freedom." Moreover, the Southern California-based company promises to "handle the stress of dealing with [clients'] creditors".

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