ORLANDO, Fla. — Action 9 investigates a new risk for college graduates who are swamped with student loan debt.
Several Brevard County companies promise to slash your payments, but Action 9's Todd Ulrich found many customers paid big fees for services they never got. He confronted top managers for answers and results.
Christina Shaw is overwhelmed by $70,000 in student loan debt. When she found a Brevard County company's Facebook ad that offered to consolidate and lower payments and slash debts, she called the number.
“They said they could do everything,” said Shaw.
Shaw paid Benchmark Processing $714 upfront. She said the company submitted some paperwork to federal lenders, but her payments were never lowered.
The Better Business Bureau has 38 complaints from consumers who had similar issues.
“They did not deliver for me. They made it a lot worse, unfortunately,” said Shaw.
She said the number of payments would have doubled.
Benchmark is operated by Michael Ainbinder, who had two other companies offering loan relief. One of those companies was kicked out of the BBB.
One of Ainbinder's business addresses is listed as his $2 million home on the Indian River.
Ainbinder didn't return calls, but Ulrich found an office for Student Debt Relief Experts, which works with Benchmark and first handled Shaw’s account.
“They're drowning in debt and feel your company is cashing in,” said Ulrich.
“Not a chance,” replied Charles Loveridge, manager of Student Debt Relief.
“They claim your company hasn't delivered,” said Ulrich.
“I have no comment. We fully consolidate loans as much as possible,” said Loveridge.
After Action 9 took Shaw’s case to the company, she got a full refund.
Later, she found student loan consolidation services for free that worked for her.
“I'm currently refinancing with the Department of Education,” said Shaw.
Student Debt Relief said it tells all its clients the same services it offers could be done by themselves at no charge.
Experts ask that consumers be highly skeptical of any company that charges upfront fees. Free services can be found at StudentLoans.gov.