Skip to Content

YES, we are available by phone and email!

COVID-19 MESSAGE

Blog

FTC proposes rule barring up-front fees for mortgage relief companies

February 10, 2010

The Federal Trade Commission (FTC) recently proposed a rule intended to protect distressed homeowners from foreclosure rescue and mortgage modification scams. The proposed rule is aimed at reining in companies who promise, in exchange for an up-front fee, to obtain mortgage loan modifications or other relief for consumers facing foreclosure. The rule would prohibit the charging of an up-front fee by mortgage relief companies.

FTC Chairman Jon Leibowitz stated, “The proposed rule would outlaw up-front fees so companies can’t take the money and run.”

Under the proposed rule, companies could not be paid until they had a documented offer from a mortgage lender or servicer that lives up to the promises they have made. With historic levels of consumer debt, high unemployment, and the extended and unprecedented downturn in the housing and mortgage markets, there have been extraordinarily high rates of mortgage loan delinquency and foreclosure. Regrettably, unscrupulous companies have been taking unfair advantage of many distressed homeowners, charging high up-front fees and then doing nothing to help the homeowners remain in their homes or deal with debt issues. Thus far, the FTC has pursued 28 enforcement actions against mortgage relief companies. The proposed rule would help ensure that mortgage relief companies actually provide some assistance to borrowers before taking a fee from these cash-strapped homeowners.

Free Consultation
Martin & Jones, PLLC logo

“Forest, once again, my family and I thank you for obtaining another settlement on behalf of my Father. It’s almost uncanny that these checks seem to come at very opportune times. This one comes as we are expecting our fourth grandchild. It will provide her some sound footing towards her future college education, plus help Mom and Dad with the medical expenses. Sometimes, I think my Dad is helping you guys with this. Maybe so. Anyway, thank you again for your hard work.”

Martin & Jones, PLLC. Badges
Martin & Jones, PLLC. Badges
Martin & Jones, PLLC. Badges
Martin & Jones, PLLC. Badges
Martin & Jones, PLLC. Badges
Martin & Jones, PLLC. Badges

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
Free Consultation

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.