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Do you have student loans? Did you respond to an ad from Ameritech Financial claiming to offer you debt relief? The FTC has sued Ameritech for deceptive practices and just sent letters about the case to thousands of customers. The court hasn’t ruled, but there are steps you can take now to make sure your payments are going toward your loans. In addition, Ameritech may have changed your Federal Student Aid (FSA) account information. There are steps you can take to protect your financial privacy.

Here are answers to questions consumers are asking.

How do I know if Ameritech Financial is the company I do business with?

In addition to the name Ameritech, the company uses the names American Financial Benefits Center, AFB, AF Student Services, and Financial Education Benefits Center (FEBC).

I’m making monthly payments to Ameritech. Are those payments going toward my student loans?

No. Your monthly payments to Ameritech do not go toward paying your student loans. And Ameritech does not make payments on your behalf to your loan servicer.

Why is the FTC suing Ameritech?

According to the FTC, Ameritech failed to deliver on its promise that people could permanently reduce their monthly payments or get total loan forgiveness. The FTC also says the company charged illegal upfront fees. In addition, the FTC alleges the company told people their fees would go toward their student loan balances, but that wasn’t true.

Do I need to pay Ameritech to take advantage of loan repayment or forgiveness programs?

No. The Department of Education doesn’t charge borrowers to enroll in repayment and forgiveness programs. That means you are currently paying Ameritech for things you can get for free on your own from the Department of Education.

Can I stop making monthly payments to Ameritech?

Yes. To cancel your membership, call Ameritech at 1-800-792-8621. Canceling will not impact your student loans.

Will I get my money back?

The FTC works to return as much money as possible to consumers. But this case is still in court, so there’s no way to know if it will result in refunds. Legal actions take time, so please be patient. As soon as we have updates, we’ll post them here.

How can I tell the FTC about my experience with Ameritech?

File a report at FTC.gov/complaint. Your information will go into a secure database the FTC and other law enforcement agencies use for investigations. When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

What can I do to protect my financial privacy?

Ameritech may have changed your Federal Student Aid (FSA) account information. So you may want to change your login and review your account. Call Ameritech at 1-800-792-8621 or contact your loan servicer to regain control of your account.

How can I check the status of my loans and the security of my account?

Contact your loan servicer.

I’ve seen other companies claim they can reduce my student loan debt. How can I protect myself from questionable practices?

Visit www.ftc.gov/studentloans. One tip: It’s illegal for companies to ask for money up front for so-called debt relief services. Don’t do business with anyone who makes you pay before getting the results they promise.

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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

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Maryannsmith5
July 12, 2018

I'm very upset with this company I've been paying for 2 years and the constant call my student loan and to find out that no money has been going towards that and I work so hard to earn money to pay off my debt for someone to keep stealing my money I even requested a

FTC Staff
July 12, 2018

In reply to by Maryannsmith5

To report your experience to the FTC, file a report at FTC.gov/complaint. Your information will go into a secure database the FTC and other law enforcement agencies use for investigations. When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

DP
July 12, 2018
I am Deaf and am victim of Ameritech payment for three years and I work at the California School for the Deaf under the State of California Department of Education and Ameritch kept charging on my credit card and kept receiving my credit rating gone bad. couldn't get a house. I was baffled. till i found from a letter from USA Federal Trade Commission.. Now how can I get the full refund and pay the student loan quicker. I am so disappointed that my credit rating went bad. please let me know the update... I am going to do the Steps i can take... I will let you know if things go bad. DP
FTC Staff
July 12, 2018

In reply to by DP

You can report your experience to the FTC. Go to  FTC.gov/complaint. The information you tell the FTC will be saved in a secure database. The FTC and other law enforcement agencies use the information for investigations.

When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

You can also do the Steps you can take that are listed in the letter from the FTC.

Rob D
July 12, 2018
So I get this letter from the FTC and I call Ameritech - They stated all customer service reps are busy and someone will call me back to answer my questions about the letter I received from the FTC. No more than 10 minutes after ending the call, i get an email from Ameritech stating that claims are false and that they filed a lawsuit against the FTC. Well that is great customer service...an email response just lets me know there is some shady business happening there. I hope I can be refunded and use the funds to actually pay my loans! What a mess :(
LDG
July 12, 2018
I received this letter today and I'm in shock and pissed off. I've been paying them $99/month for 3 years. I received 4 emails from them since mid June asking to "update my information"; something told me not to call them and now here we are dealing with these scammers. I'm calling them and my bank to stop the payments. I hope we all win this case and get our refunds. Good luck.
aj6830
July 16, 2018
This could really make a person just want to give up on life!
Kyle
July 16, 2018
I paid Ameritech for over a year from 2016-1017 before learning on my own that I was being ripped off and could do what they were doing for free. After paying them over $100 a month for so long I became concerned when I saw my student loan debt was going up, with no good answer from Ameritech on how paying them was helping me. They said if I made 300 monthly payments to them then my debt would go away. That’s 25 years! I cancelled and have since gone back to handling my debt on my own, though Ameritech set me back over a year. I hope that this shady company is shut down and people are able to recover at least some of their losses.
Trip
July 18, 2018
I have been paying $100 for three years. I recently found out because they haven't paid on my loan I owe over $100000 for loan and interest. Also told they could not have loan forgiven for 7 years.I wan loan forgiveness, all my money back!!!
FTC Staff
July 20, 2018

In reply to by Trip

To report your experience to the FTC, file a report at FTC.gov/complaint. Your information will go into a secure database the FTC and other law enforcement agencies use for investigations. When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

Jlynnmark05
July 19, 2018
I had recieved an email from them, and took money out of my account when I had informed them not to for about a couple of months. They left me paying a huge negative balance to my account, as well as forcing me to completely closing my account and starting a new account at different bank.
MisterMath
July 23, 2018
I applied to this company and they said they could reduce my monthly payments. They gave me a quote that was much lower than what I was paying. They also said my payments would be suspended until the paper work was completed. Not the case. They took my money, did not suspend payments, and then said they made a mistake and only lowered my payment by a few dollars.. This company is a mojor rip-off
KokoRose
July 31, 2018
I called Ameritech today and asked them to tell me exactly how much money I have paid them. It was over $2000! I asked for a refund and they said they can't because they are under investigation. I asked them to close my account. I am very frustrated with this company. I also filed a complaint with FTC. I hope we all speak up so they can know this cannot happen again!
Bex
August 02, 2018
I received the letter about the law suit too. AFT got me for 100's of dollars too! The letter sent to me went to my old address. Then was forwarded to me via the post office. I would love to be included in the law suit. How do I confirm you have my correct address on file?
FTC Staff
August 15, 2018

In reply to by Bex

You can give your contact information to the FTC, when you file a report at FTC.gov/complaint. Your information will go into a secure database the FTC and other law enforcement agencies use for investigations. When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

AM
August 14, 2018
I too have fallen for the false promises of Ameritech. I can't remember how I got into bed with them, but they sold me a false dream of helping me reduce my student loan debt. At the time I think I was paying them $50 a month or every pay period; one or the other but I also noticed that money was being taken out of my account to made towards my student loans as well. After I saw this I was confused because I thought Ameritech acquired the debt and I was paying them a lower payment than what I was paying my current student loan lender. It seemed like they were just "monitoring" my student loan activity because when I finally stopped paying them, Ameritech kept sending me emails for me to send them updated employment verification. I want to say I paid them for about a year before I came to my senses. If I don't get any of my money back that'll be fine as long as the FTC can shut them down and any and all they can who were involved.
BaileeMSW
August 16, 2018
I fell for this scam a few years ago. I had 7 of the 10 years needed for forgiveness but that was all null and void once they consolidated my loans. I’ve started over my 10 year period towards forgiveness because of them.
Kirknembhard
August 17, 2018
I have paid this company for 2 years and they did not reduce my debt on my loans.
mg
August 16, 2018
My student loans tripled in one month, AFBC stopped Sallie Mae from tripling my payments back to them. So, all my monthly payments are NOT going to my loans? Does this mean I am late on my loans as I thought I was paying my loans every month? What will stop Sallie Mae from tripling the loans I pay each month? They have actually reduced my monthly payment, should I be concerned?
FTC Staff
August 17, 2018

In reply to by mg

Your monthly payments to Ameritech do not go toward paying your student loans. Ameritech does not make payments on your behalf to your loan servicer.

To check the status of your loans, contact your loan servicer.

You can stop making payments to Ameritech. To cancel your membership, call Ameritech at 1-800-792-8621. Canceling your membership with Ameritech will not have an impact on your student loans.

Ameritech may have changed your Federal Student Aid (FSA) account information. You may want to change your login and review your account. To regain control of your Federal Student Aid account, call your loan servicer, or call Ameritech at 1-800-792-8621.

Wondercitystreets
August 17, 2018

In reply to by mg

Am I reading this correctly? Are you stating that AFBC actually helped you?
AngelaT
August 16, 2018
I have been paying AFBC for over 1 year. I felt something wasn't right with this company, because my loan payments wasn't going down. So, I cancelled my bank account to stop payments to them. When the representative told me about the loan forgiveness was to make payments to them for 25 years. I'm like oh NO! You are not going to be getting my money that long and not paying my student loan debt down. I want my money and those fees I paid to get started, to go toward my student loans.
Curious
August 17, 2018
I am curious why student loan provider never came after me for money owed for student loans if my payments were not being made? Confused. Loan forgiveness is what I was promised after ten years of payments.
FTC Staff
August 17, 2018

In reply to by Curious

Ameritech may have changed your Federal Student Aid (FSA) account information. You may want to change your login and review your account. Call Ameritech at 1-800-792-8621 or contact your loan servicer to regain control of your account.

Aruiz1981
August 17, 2018
I had a bad experience with this company! Once I found out that the money they were taking directly out of my account I cancel there services!
DAJenn
August 19, 2018
I received a post card from Ameritech and making payments since 2011. It was also my understanding each payment was applied to my student loan balance. In addition Ameritech is working toward my receipt of forgiveness status. In July 2018 (7yrs later) I get this information like everyone else. We need the proper support here to handle the situation. What happen to doing the RIGHT THING? Apparently they did not study what we did. Should we close these accounts or wait for the final judgement call?
FTC Staff
September 13, 2018

In reply to by DAJenn

The money you pay to Ameritech does not go toward paying your student loans. Ameritech does not make payments on your behalf to your loan servicer. The payments are not applied to your student loan balance.

You can stop paying Ameritech. To cancel your membership, call Ameritech at 1-800-792-8621. If you cancel, it won't have an impact on your student loans.

You could enroll in a repayment or loan forgiveness program. The Department of Education doesn’t charge borrowers to enroll in repayment and forgiveness programs. Go to studentaid.ed.gov to get Department of Education information.

You can tell the FTC what happened to you by filing a report at FTC.gov/complaint. Your information will go into a secure database the FTC and other law enforcement agencies use for investigations. When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

Mlafuente
August 22, 2018
The fact that they charge 99 bucks per month for thier services is a scam. You can pay them once per year then cancel until the following year and recieve the same "services" which is just filling out paperwork to lower payments. I've wasted close to 4 grand over 3 and a half years with Ameritech..... i shouldve known better. i doubt i'll get my money back because I'm sure I signed something in all the small letters but it is still not fair for them to rob you that severely each month.
dumbdad1
August 27, 2018
I am a foolish parent who thought I did my research on this company! Not one but Two of my children have been paying this company for several years now in the amount of thousands of dollars so you can imagine how sick I was when they got the email from the FTC. I immediately called Nelnet, the company who bought my daughters federal loans and here is what they told me. The loans are in good standing and not in default. What AFBC has been doing with the information like tax returns and pay stubs...is sending the information to Nelnet so the loan is staying in deferred status for various reasons with the amount due of 0$. The amount of the loan is still the same and has NOT been reduced or forgiven. When we asked questions regarding AFBC the lady at Nelnet tried to explain but was unclear as to their relationship other than AFBC is keeping them updated on my daughters income and work status. In fact they had just updated their records on what my daughter sent Aug 1, 2018. I am putting a stop payment on the auto withdrawl from the kids checking accounts and contacting the fraud department at my bank so no further payment can be given to AFBC. I am having my kids file a complaint and hopefully join a class action lawsuit if there is one! Get out now if you can. (Side note: When my daughter called AFBC they told her everything was fine and that she didn't need to worry because they had not been found guilty.)
MicheleT42
August 27, 2018
I know my payments have not been going to pay off my student loans and that I can stop paying them and it will not affect my student loans. I do want to get my money back and I want to know what happens to my loans in the meantime? Does interest accrue or do I pick someone else? I feel so victimized!
FTC Staff
September 13, 2018

In reply to by MicheleT42

You can contact your loan servicer to check on the status of your loans. You could learn about repayment options offered by your lender or loan servicer.

The Department of Education doesn’t charge borrowers to enroll in repayment and forgiveness programs. Get information about the programs at studentaid.ed.gov.

ALBrady56
August 28, 2018
This is so frustrating, I have been with them for 3 years and all of that is gone. I am just now working on repaying my loans, but with depleted funds, because I sent it to AFBC, I have to cut back on my food bill to have enough to pay the min. balance owed. I really hope the government sees what they did to so many people and makes them pay. Schools get in trouble for fraudulently deceiving students and have to pay the loans back for them, why doesn't the government make this company do the same???
Kimmy
September 03, 2018
Wow! What makes this even worse isi checked my loans and not only have the money I have been paying since 2015 not been applied but thousands of dollars of interest has been added on to my loan balance. It has drastically effected my credit score as well. I’m sick
CRB
September 03, 2018
I just filed a complaint- it sucks to know you have all this money in student loan to pay back ,then get scammed into spending more money thinking you are reducing your debt. I faced the same thing as everyone else posted on here ;for the last 2.9 years. Requested $500 one time payment then $99 dollars a month for ten years to completely pay off my student loan.
E.R.
September 06, 2018
So there is absolutely no reason to be enrolled with AFBC? The payments don't go through to paying off any amount of my loan and the monthly payments aren't needed for a stay of paying my loans and obtaining loan forgiveness? The thing I'm most confused about is the program I've enrolled doesn't actually need any monthly payments and is a free program offered from the Dept. of Education? That sounds too good to be true? Should I immediately cancel my monthly payments or wait for a verdict in the lawsuit?
FTC Staff
September 13, 2018

In reply to by E.R.

The money you pay to Ameritech does not go toward paying your student loans. Ameritech does not make payments on your behalf to your loan servicer.

You can stop paying Ameritech. To cancel your membership, call Ameritech at 1-800-792-8621.

You can sign up on your own for a loan repayment program or a loan forgiveness program with the US Department of Education. You don't need to pay anyone to get enrolled in those programs. Learn how to enroll in those programs at studentaid.ed.gov.

Jamie
September 07, 2018
I'm disgusted with this company. Knowing that none of my payments over many years has gone to my loans is so frustrating. And I've requested they contact me so I can cancel my account with them and asked for my fed loan log in information only to receive an update that same evening saying that my fedloan information has been updated and changed. AFTER I requested me information to handle everything myself?!
Fran J
September 10, 2018
I tried to file a complaint on the FTC webside, but I do not have all the information needed to complete the complaint. I don't know the date that phone call was initiated or who I spoke with. Last year when I became aware that none of the payments I had made to AFBC had gone towards my loans I immediately cancelled my payments with them. I just want to know what recourse I have in getting any of the money back that I put towards what I thought was a payment towards my loans that would eventually be forgiven?
FTC Staff
September 13, 2018

In reply to by Fran J

Please file a complaint with the FTC at FTC.gov/complaint, even if you can't answer every question. Give as much information as you have, and are willing to give. It's OK if you can't answer every question.

When you finish filling out the form and you submit your complaint, you'll get a complaint number or file number. You can save that number and come back later to fill in details if you want.

UPSET1000
September 10, 2018
For the last 3yrs 1/2 I have trusted this company AFBC with my student loan and my bank acct. I've been paying $99 monthly all of sudden I got used while I am trying so hard to make a living and found out that MY PAYMENTS NEVER GO TOWARD my student loan service...ururh. I really don't know what to do next...I want my money Back...PLEASE HELP!
FTC Staff
September 13, 2018

In reply to by UPSET1000

You can tell the FTC what happened to you by filing a report at FTC.gov/complaint. Your information will go into a secure database the FTC and other law enforcement agencies use for investigations. When you go to FTC.gov/complaint, click on: Credit and Debt, then Debt, and then A company offering debt management or credit counseling.

darkchains
September 17, 2018
I just had to consolidate the loans i thought they had covered so obviously they are just taking my money the last couple years.
bghaleb
September 18, 2018
I paid $700 up front for them to lower my payment, I have 5 different parent plus loans with interest rate vary from 6.25- 7.3, they consolidate all my loans at 7.5% and my payment went from $375/ month to $760 and the most amazing thing is they told me that it is just in the beginning because they collect all the interest up front. the guy give me his name and phone number and claim that he is with Nelnet.. I get a bill from Nelnet, I called them they said they have my loan but they don't know this guy.. they said the fed-loan are using them as third party.. who do we believe? make payment and the amount goes up!! where does the money go? I am 58 years old trying to find out how many more years I need to work to pay off my loans before I can retire.. but it seems like there is a whole in the pocket and the money goes down the drain.. HELP
FTC Staff
October 23, 2018

In reply to by bghaleb

If you are sending money to Ameritech, it is not going to pay your student loans. Ameritech does not make payments on your behalf to your loan servicer.

The Department of Education doesn’t charge borrowers to enroll in repayment and forgiveness programs. You can enroll in the repayment and forgiveness programs for free with the Department of Education at www.studentaid.ed.gov.

To cancel your membership, call Ameritech at 1-800-792-8621. Canceling your membership does not have an impact on your student loans.

Patsy
September 30, 2018
I paid for two years thinking that my student loans were being reduced. I'm glad someone is doing something about it. Hopefully we can get some of our money back.
Burnersteve
December 02, 2018
Whats the latest news, is the case closed, are we getting money back
FTC Staff
December 19, 2018

In reply to by Burnersteve

The FTC filed the case five months ago. It has not been closed. We will publish another blog when there is more informtion.

Vero
December 17, 2018
You are no longer able to contact anyone from Ameritech to stop any automatic payments. I had to have my bank stop payment.
Maryannharmon
January 01, 2019
They charged me 100.00 a month first year, then the next years been charging me 50.00 a month. I’m so upset I want all my money back!!! I can’t even log on to do a complaint!
Shone Jones
January 06, 2019
I thought that I was doing good on my payments until I found out my student loan debt did not decrease at all. I want my money back.