FTC refunds $1.2 million to victims of 'debt-relief' fraud

Jorgen Wouters
Stack of bills
Stack of bills

Nearly 7,000 victims of a nationwide debt-relief scam that led many consumers into financial ruin and bankruptcy will be receiving refund checks from the Federal Trade Commission.

The defendants, claiming they could reduce debt, rarely provided services promised and usually left customers in even deeper debt, the agency said. The compensation fund represents the available assets of the defendants, about $1.2 million. The amount of each check will vary based on payments to the defendants, averaging about $180 per consumer.