FTC moves against mortgage modification and foreclosure relief scams

June 18, 2010 by · Leave a Comment
Filed under: Legal News 

We should be glad to see the FTC stepping up and doing its job against fraudsters of all kind.  Today in other news, the Attorney General’s office is cracking down on companies that have been committing mortgage fraud.  We have to persecute any and all wrong doing in this crisis or we will set up the precedent that is it okay to steal and loot the American people at will.  The people that are taking these types of programs are already vulnerable because of their financial situation.  We have to protect them from being exploited by these types of scams.

Consumer Reports – The Federal Trade Commission announced this week that it is taking legal action against more than a dozen marketers accused of offering bogus mortgage modification or foreclosure relief services. Foreclosure rescue companies that charge high upfront fees for help that never comes were among five financial traps we advised readers to steer clear of in a March 2009 Consumer Reports story describing scams that were flourishing in the wake of the economic meltdown.

We noted that some foreclosure prevention services also mislead consumers by falsely claiming to be affiliated with services affiliated with the federal government or mimicking federal government websites offering help to distressed homeowners.

Among the defendants with whom the FTC has reached a settlement is Making Home Affordable, a group which the FTC alleged impersonated MakingHomeAffordable.gov, a legitimate government website that helps eligible homeowners refinance or modify their mortgages. The defendants bought advertising links on the results pages of Internet search engines, so that consumers looking for “making home affordable” were diverted to commercial websites pitching loan-modification services or that sold the consumers’ personal information to such profit-seeking operations.

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