The Illinois Attorney General announced recently that the state is suing two companies that have been running student loan repayment scams. The companies have taken advantage of distressed borrowers in this state and across the county by using high-pressure sales techniques to sell services that they cannot deliver.
If you have student loans, you may be looking for any help you can get to pay them off. As bad as the situation is, you need to be careful of offers for help that call for money upfront or monthly fees. This is the modus operandi of companies that scam borrowers by promising debt relief that they cannot -- and will not -- deliver.
We are continuing our discussion about a criminal case involving a refinancing scheme. The defendant is not from Illinois, but his victims -- this time around -- were from all over the country. A court recently sentenced him to 33 months in prison for three counts of wire fraud; he must also make restitution to his nine victims. In all, he took more than $300,000 from them and essentially pocketed the money.
In our last couple of posts, we talked about ways that we get ourselves into financial trouble. We talked a little about ways to get out of the hole, too. This week we came across a story about a man who took advantage of people trying to resolve their financial problems, and it reminded us how important it is to be wary of people and businesses that make promises to help with credit or mortgage issues for an upfront fee.