Comment on Feds File 9 Lawsuits Against Alleged Mortgage Relief Scammers That Took Millions From Consumers

Feds File 9 Lawsuits Against Alleged Mortgage Relief Scammers That Took Millions From Consumers

(jetsetpress)If the thought of losing one’s home wasn’t bad enough, finding out that you’ve been ripped off by the companies promising to help must be even worse. Today, the Consumer Financial Protection Bureau, along with the Federal Trade Commission and 15 states announced a string of lawsuits and other actions against such deceptive companies. The CFPB announced three lawsuits against foreclosure relief companies and their operators that collected more than $25 million in illegal advance fees for services that falsely promised to prevent foreclosures or renegotiated troubled mortgages. The suits seek compensation for victims, civil fines and injunctions against the alleged scammers. The CFPB alleges that the companies and individuals took part in a number of illegal practices including: collecting fees before obtaining a loan modification; inflating success rates and likelihood of obtaining a modification; duping consumers into thinking they would receive legal representation; making false promises about loan modifications to consumers. Clausen & Cobb Management Company, Inc.

 

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