Consumer Bankruptcy News recently reported the following:
The Federal Trade Commission has filed three separate actions in federal court to halt the allegedly deceptive tactics of three operations that preyed on distressed homeowners by falsely claiming they could save their homes from foreclosure and then charging them thousands of dollars up-front, while delivering little or no help and often driving them deeper into debt.
Since 2008, the FTC has brought more than 40 cases against companies peddling fraudulent mortgage relief schemes, which caused hundreds of millions of dollars in consumer injury. These law enforcement actions have helped tens of thousands of consumers who were victims of these scams and have prevented tens of thousands more from becoming victims.
In November, 2010, the FTC issued the Mortgage Assistance Relief Services Rule, which provided new protections and banned mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or services that they deem acceptable.
In all three cases, the FTC took action against defendants who allegedly peddled bogus mortgage relief services, in violation of the FTC Act and the MARS Rule. The agency also charged that two of the operations violated the Telemarketing Sales Rule.
More on this in future posts.
