The Federal Trade Commission (FTC) is distributing over $356,900 in refunds to consumers affected by a student loan forgiveness scam. The scam involved fraudulent claims made by SL Finance LLC and its owners, Michael Castillo and Christian Castillo. They falsely presented themselves as being affiliated with the U.S. Department of Education and charged illegal fees for non-existent loan forgiveness programs.
According to the FTC's complaint, the defendants misled borrowers into believing their program was part of the CARES Act or similar COVID-19 relief initiatives. In October 2023, a settlement was reached where the Castillo brothers agreed to surrender their assets. These assets are now being used by the FTC to issue refunds to affected consumers. Additionally, they are permanently banned from offering any debt relief services.
The FTC is sending checks to 7,150 consumers who were impacted by this scam. Recipients are advised to cash their checks within 90 days as indicated on the check itself. For inquiries regarding payments, consumers can contact Analytics at 833-588-3361 or visit the FTC website for more information about the refund process. The FTC emphasizes that it never requires individuals to pay money or provide account details for refunds.
The agency's interactive dashboards offer a state-by-state breakdown of refunds in various cases handled by the FTC. In 2024 alone, FTC actions resulted in over $339 million in consumer refunds nationwide.
The Federal Trade Commission's mission includes promoting competition and protecting consumers through education and enforcement actions. The agency advises against falling victim to scams involving demands for money transfers or promises of prizes and encourages reporting such activities at ReportFraud.ftc.gov.
