Tag: mortgage consulting group

Federal Trade Commission vs. Mortgage Relief Companies

Federal Trade Commission sues mortgage relief companies

The Federal Trade Commission recently filed three separate lawsuits against mortgage relief companies – Prime Legal Plans/Reaching U Network, American Mortgage Consulting Group, and Expense Management America.  According to the FTC’s allegations, these companies were fraudulently selling mortgage relief services.  The companies charged homeowners for various services that were supposed to reduce mortgage payments or otherwise relieve them of mortgage obligations.  In reality, the companies accepted payment without providing services.  Additionally, the companies violated other laws by, among other things, calling homeowners that were on the do-not-call registry, fraudulently claiming to be associated with government agencies, fraudulently claiming to be attorneys, collecting upfront fees, and claiming to be charities.

It is bad enough that these companies were charging distressed homeowners without providing services.  What’s worse is that, by convincing homeowners that their services would be effective, these companies prevented homeowners from pursuing legitimate services and defenses.

According to a recent press release, the FTC has filed more than 40 cases against fraudulent mortgage relief services since 2008.  This suggests that such practices might be quite common.  Homeowners should always be on guard against potential scams, and should gather as much information as possible about mortgage relief or other debt defense companies before making payments.

The Attorneys at Vaughn, Weber & Prakope, PLLC have experience in Loan Modification Negotiation and Foreclosure Defense.  If you have any questions about these areas and would like to schedule a free consultation, call our office at 516-858-2620 today to schedule a free consultation.

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