The Federal Trade Commission is sending more than $356,900 in refunds to consumers harmed by scammers who lured struggling student loan borrowers into signing up for a program that promised loan forgiveness that did not exist.

In the FTC’s complaint against SL Finance LLC and its owners Michael Castillo and Christian Castillo, the agency charges that the defendants pretended to be affiliated with the U.S. Department of Education, charged illegal junk fees, and lured students with repayment programs and loan forgiveness that did not exist. The complaint also notes that the defendants falsely claimed that their program was part of the CARES Act or a similar COVID-19 relief program.

As part of a settlement announced in October 2023, the Castillo brothers agreed to surrender their assets, which the FTC is using to provide refunds to consumers. The settlement order also permanently bans them from offering debt relief services of any kind.

The FTC is sending checks to 7,150 affected consumers. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, Analytics, at 833-588-3361, or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2024, FTC actions led to more than $339 million in refunds to consumers across the country.

The Federal Trade Commission works to promote competition and to protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about consumer topics and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov.