A federal consumer watchdog just cracked down on yet another student-debt-relief company it accused of scamming thousands of borrowers.that over 7,100 student-loan borrowers would receive more than $3.5 million worth of checks in the mail after accusing Timemark Solutions — a student-debt-relief company — of violating the Telemarketing Sales Rule.
"From 2016 through October 2019, the company used telemarketing campaigns to convince people with federal student loans to pay up to $699 in fees to file paperwork to reduce or eliminate their monthly payments, through loan consolidation, forgiveness, or income-driven repayment plans," the press release said.
According to the Telemarketing Sales Rule, it's illegal for a telemarketer to request or receive fees for debt-relief services before the consumer has made at least one payment using the new arrangement. The CFPB said Timemark violated that rule because it requested fees from borrowers within a few days of them enrolling in the new plan.
The CFPB reached a settlement with Timemark in July 2020, and borrowers will soon start receiving refund checks in the mail administered by Epiq Systems, which has a contract with the agency to facilitate payments. Borrowers who do not receive a check but believe they are eligible can submit a claim to, and borrowers with questions about the refunds can email info@cfpb-timemark.org or call 866-991-0913.
Over the past few years, the CFPB — along with the Federal Trade Commission — has scrutinized a variety of student-debt-relief companies over whether they engaged in fraudulent behavior. In December, for example, the CFPB
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