FTC Mails Refund Checks Totaling Approximately $800,000 to Consumers Victimized by Alleged Mortgage Relief Scams

August 8, 2014
mortgage lending news
The Federal Trade Commission (FTC) is mailing out checks with a total value of about $800,000 to 1,305 consumers who were victimized by two mortgage-relief scams. The size of the checks from the FTC will depend on how much the individual consumers lost to the schemes.

One scheme, under the name Precision Law Center, allegedly made false promises that if consumers sued their lenders in so-called “mass joinder” lawsuits, they could obtain favorable mortgage concessions or stop the foreclosure process. The second scheme used names such as FreeFedLoanMod.org, HouseHoldRelief.org, and MyHomeSupport.org, under which defendants charged consumers for “forensic loan audits” and allegedly claimed that homeowners could use the results to force lenders to give them better mortgage terms.

Consumers are advised to evaluate carefully any offers that claim to help lower mortgage payments or prevent foreclosure. It is illegal for anyone to collect money up-front for loan-modification or foreclosure-rescue services.

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