The federal government is asking search engines to keep a watch for suspicious ads and search results relating to phrases such as “student debt forgiveness’’ and “Obama student loan relief.’’
The Consumer Financial Protection Bureau (CFPB) recently sent letters to Google, Bing and Yahoo asking them to crack down on the rising number of online scammers preying on student loan borrowers trying to reduce their debt.
“While we have warned consumers about these scams we are concerned that unscrupulous companies may be using aggressive advertising through search products to lure distressed borrowers,” wrote Rohit Chopra, the CFPB’s student loan official.
He urged the search engines to closely monitor advertising on key search terms and help drive traffic toward legitimate sources of information.
The fraudulent businesses say that for a few hundred dollars they can help people enroll in a Department of Education renegotiation program – which is actually free.
Most sites file a few pages of simple paperwork on behalf of borrowers to enroll them in income-based repayment plans that don’t cancel loans. Some go as far to guarantee that the loans will be forgiven, and others contend they have direct connections with the Education Department.
State and federal authorities say they have noticed a rise in complaints since the federal government expanded repayment options and forgiveness plans. In some cases, companies accused of mortgage relief fraud have re-emerged as student debt relief advisers, according to the Federal Trade Commission.
The top search engines say they have policies against advertisers who misrepresent their products and services and advise users to report potential scams as soon as possible. In the last year, Google has disabled more than 524 million ads that violated it policies. Microsoft filters and monitors Bing traffic for known fraudulent patterns.
The CFPB encourages consumers to be on the lookout for warning signs about student loan schemes. Among them: pressure to pay high upfront fees, promises of immediate loan forgiveness or debt cancellation and requests for your federal aid personal identification number.
The CFPB stresses that you don’t have to pay someone to help with your student loan.
Targeting illegal debt relief companies has been a government priority for some time. Last year, it shut down a company and filed suit against another alleging that they were exploiting student loan borrowers, making false promises and charging illegal fees.
