Operation 'Game of Loans' nets more than $172,000 for Oregon students duped by scammers

Oregon Attorney General Ellen Rosenblum(The Oregonian/File)

Oregon participated in a crackdown this month targeting companies the Federal Trade Commission says have scammed people trying to pay back student loans out of at least $95 million in fraudulent fees nationwide.

Operation "Game of Loans," representing 11 states and Washington D.C., coordinated legal action against dozens of companies which advertised their services as a way to help students save money on their loans. Instead, federal and local officials say, the companies pocketed millions and duped students across the country.

"Winter is coming for debt relief scams that prey on hardworking Americans struggling to pay back their student loans," Maureen K. Ohlhausen, the agency's acting chair, said in a statement. "The FTC is proud to work with state partners to protect consumers from these scams, help them learn how to spot a scam, and let them know where to go for legitimate help."

In Oregon, four companies – D.O.R.M. Group, Student Loan Association, R.A.N. Wild Productions and Brelvis Consulting – agreed to stop doing business in the state and pay back students.

According to Ellen Rosenblum, Oregon's Attorney General, 184 students in Oregon received restitution totaling $172,922.

Rosenblum said the companies should be ashamed of their business practices. "Companies that prey on Oregonians who are struggling to pay off their student debt are, in my book, the worst kind of scammers," she said in a statement. The state of Oregon also received $48,000 from the agreements.

The four companies -- including some that do business under generic sounding names like the Student Loan Help Center and Student Loan Service Managers -- didn't admit to any wrongdoing under the terms of the deal but did agree to pay back students.

Officials said the companies tracked students down after they filled out a form online, and would pepper them with false information about updates to the federal student loan consolidation program or other misleading statements about federal policies.

The affected students gave personal information, including sensitive information used to fill out Free Application for Federal Student Aid, giving the companies control over their account.

From there, the companies filled out free student loan consolidation applications, and would fill out fraudulent information to bring down the loan payments. The company would then charge a monthly fee to the students, who falsely believed they were paying the money toward their loan.

But the money allegedly went to the company.

Rosenblum said the companies masqueraded as debt managers but were not registered to do that work. "Consumers should always be cautious when giving financial information, PIN numbers or other information to third-party sources--no matter how much money they promise to save you," she said in a statement.

Students with federal financial loans should check with their loan providers to make sure they have the right contact information and are actually paying down their debt.

Students can also visit the federal studentloans.gov website for information.


-- Andrew Theen
atheen@oregonian.com
503-294-4026
@andrewtheen

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