WASHINGTON, D.C. — The Federal Trade Commission is issuing more than $356,000 in refunds to thousands of consumers defrauded by a deceptive student loan relief operation that falsely promised loan forgiveness tied to federal programs.
According to the FTC, SL Finance LLC and its owners, Michael and Christian Castillo, misled struggling borrowers by posing as representatives of the U.S. Department of Education and marketing repayment and forgiveness programs that did not exist. The defendants also falsely linked their services to the CARES Act and other COVID-19 relief initiatives.
The agency’s complaint alleged the defendants collected illegal fees while offering no legitimate debt relief. As part of a 2023 settlement, the Castillo brothers agreed to forfeit their assets and are now permanently barred from providing any debt relief services.
The FTC is mailing refund checks to 7,150 affected consumers. Recipients are advised to cash their checks within 90 days of issuance.
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