FTC Returns $467,000 to Customers Affected by Mortgage Relief Scam

FTC  •  FTCA  •  Mortgage

On June 5, the Federal Trade Commission (FTC) announced that it will mail over $467,000 to 2,653 consumers affected by a scheme whereby a law firm charged up-front fees for mortgage modification and other relief services that were never provided, in violation of Section 5 of the Federal Trade Commission Act.  The law firm and individual defendants also exaggerated their role as attorneys and pretended to be affiliated with a government agency.  In 2012, the FTC won a $2.6 million judgment in the U.S. District Court for the Middle District of Florida against three individual defendants involved in the scheme, reached settlements of $3.1 million each with five other defendants, and entered a default judgment of $3.1 million against one defendant.

Download PDF

Comments are closed.