• 22
  • April
    2011

Previous posts on this blog have covered actions that the Federal Trade Commission has taken against companies engaged in unfair, deceptive or fraudulent business practices. During any time, but especially during the economic downturn, certain businesses have sought to make a profit on people's financial struggles.

These companies include certain third-party debt collection agencies that violate the Fair Debt Collection Practices Act by harassing consumers or making legal threats against them in order to collect on a debt. These companies may have bought debt from another company cheaply and then try to retrieve it for profit from a consumer that might not even know about the debt or is falsely believed to have a debt.  

These companies can also include those purporting to have special connections with mortgage lenders that can help them save a family's home from foreclosure. They charge an up-front fee and a desperate family might pay it. The Federal Trade Commission seeks to end such practices and to make sure consumers are compensated if possible. The agency recently mailed refund checks to consumers who were defrauded by a so-called foreclosure rescue company that charged an up-front fee to supposedly rescue people's homes from foreclosure.

The FTC is mailing $2.3 million in 1,410 checks to consumers. The amount is the total that consumers paid to Home Assure LLC. The company claimed that it could help consumers get the loan modifications they needed. In the settlement with the FTC, the company agreed to pay back consumers and stop trying to sell foreclosure rescue services. The FTC encourages consumers to file a complaint with them if they believe they are the victim of unfair, fraudulent or deceptive business practices.

Source:

FTC Returns $2.3 Million to Consumers; Mortgage Foreclosure Rescue Scam Victims Receive Full Refunds (Federal Trade Commission)