Comment on Western Union-Owned Mortgage Company Must Return $33.4M To Customers

Western Union-Owned Mortgage Company Must Return $33.4M To Customers

(Karen Chappell) A mortgage payment company owned by Western Union has agreed to return $33.4 million to consumers following allegations that it misled customers into thinking they could save thousands of dollars on their home loans. The Consumer Financial Protection Bureau announced today that Paymap Inc, a unit of Western Union Co, and loan servicer LoanCare LCC agreed to pay a total of $38.5 million to resolve charges they deceptively lured consumers into signing up for a program advertised to help pay off mortgages faster, while also saving on interest payments. According to the CFPB consent orders against Colorado-based processing company Paymap [PDF] and Virgina-based LoanCare [PDF], the companies marketed and provided the “Equity Accelerator Program” as a way for consumers to make automatic mortgage payments via electronic debts from their bank accounts. Advertisements for the program included promises that “the average customer will achieve over $33,000 in interest savings.” However, the CFPB contends that Paymap had no factual basis to support such a claim. As a result of the unsubstantiated claim, since 2011 nearly 125,000 consumers signed up for the program, paying an enrollment fee of $295 and a transaction fee of $2.50 for each automatic withdrawal made from their bank accounts.

 

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