Martin & Jones, PLLC
Call today for a Free consultation.
800-662-1234

FTC Takes Action Against Mortgage Relief Schemes

The Federal Trade Commission (FTC) filed three separate lawsuits in federal court recently to halt the deceptive tactics of companies preying on distressed homeowners by falsely claiming they could save their homes from foreclosure. Instead, the fraudsters charged homeowners thousands of dollars in up-front fees while delivering little or no help and often simply driving the homeowners further into debt. The FTC announced the enforcement actions as part of its Distressed Homeowner Initiative, a federal effort to stop predatory foreclosure rescue, mortgage modification, short sale, and bankruptcy schemes that have targeted distressed homeowners. Since 2008, the FTC has brought more than 40 cases against companies engaged in fraudulent mortgage relief scams.

The three new cases filed by the FTC were brought against Prime Legal Plans/Reaching U Network, American Mortgage Consulting Group, and Expense Management America. In each case, the FTC alleged that the companies were peddling bogus mortgage relief services in violation of the FTC act and the 2010 Mortgage Assistance Relief Services (MARS) rule.

Consumers who are behind with their mortgage or other debts should be particularly wary of companies offering “mortgage relief,” “debt adjustment,” and “debt relief” services. Many of these offers come from individuals or companies offering bogus services. The companies often collect high up-front fees and then do little or nothing to actually help consumers. Distressed homeowners can contact the National Foundation for Credit Counseling (800/388-2227) for foreclosure assistance tools and referrals to low-cost, certified housing counselors. In North Carolina, the State Home Foreclosure Prevention Project (866/234-4857) offers similar assistance and provides a call center to field questions from distressed homeowners.

No Comments

Leave a comment
Comment Information

Testimonials

Contact US Get Help Now

Send us an email or call us today at 800-662-1234 to speak with an attorney about your claim or to arrange a free consultation. It costs nothing to call and there is no obligation. In fact, we are not paid until your case is resolved. Se habla español. If you are unable to travel to one of our offices in Raleigh, Durham and Wilmington, we will meet with you at your location.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Raleigh Office
410 Glenwood Avenue, Suite 200
Raleigh, NC 27603

Toll Free: 800-662-1234
Phone: 919-821-0005
Raleigh Law Office Map

Wilmington Office
1213 Culbreth Drive, Suite 121
Wilmington, NC 28405

Toll Free: 800-662-1234
Phone: 910-256-4005
Wilmington Law Office Map

Durham Office
302 East Pettigrew Street, Suite 330
Durham, NC 27701

Toll Free: 800-662-1234
Phone: 919-544-3000
Durham Law Office Map