FTC Files Three Mortgage Relief Fraud Lawsuits

Posted by Orb Staff on October 12, 2012 No Comments
Categories : Mortgage Servicing

12564_lawsuit FTC Files Three Mortgage Relief Fraud Lawsuits The Federal Trade Commission (FTC) has filed three separate lawsuits in federal court to halt the allegedly deceptive tactics of three operations that preyed on distressed homeowners by falsely claiming they could save their homes from foreclosure, and then charging them thousands of dollars up-front, while delivering little or no help and often driving them deeper into debt.

The FTC lawsuits target Prime Legal Plans/Reaching U Network, American Mortgage Consulting Group and Expense Management America. In all three cases announced today, the FTC took action against defendants who allegedly peddled bogus mortgage relief services in violation of the FTC Act and the Mortgage Assistance Relief Services Rule. The agency also charged that two of the operations violated the Telemarketing Sales Rule.

‘With many homeowners still struggling to hold onto their homes, the FTC takes a hard line against con artists who are seeking their next victim,’ says Jon Leibowitz, chairman of the FTC.

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