Operation Stolen Hope Strikes a Blow

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Fraudulent companies are are preying on homeowners across the country.  Companies misrepresenting themselves as being affiliated with government programs, in an effort to take advantage of homeowners afraid of losing their homes, are illegally charging up-front fees ranging from $1,500 to $7,000.

In many cases officials have reported that these companies falsely claim to also be affiliated with legitimate mortgage lenders.  The FCC announced six new lawsuits that are being brought against companies accused of these tactics.

In a statement,  Federal Trade Commission chairman Jon Leibowitz says, “These operator’s targeted consumers who were on the brink of disaster and instead of holding them back, they pushed them over, adding, if you are afraid of losing your home, avoid any company that asks for a large fee in advance, guarantees that they will stop a foreclosure or modify a loan, or tells you to stop making your mortgage payment and pay them instead”.

These suits claim violations of the FTC Act, and in some cases the the Telemarketing Sales Rule (TSR) or the Credit Repair Organization Act (CROA).

This is the latest action federal and state authorities are taking in “Operation Stolen Hope”, which includes 118 actions by 26 federal and state agencies, including 28 FTC lawsuits against alleged fraudulent firms.  The most recent of these lawsuits has been filed in Florida, California and Ohio.

Related posts:

  1. FTC Proposes Up-Front Fee Ban for Mortgage Modifications

Comments

One Response to “Operation Stolen Hope Strikes a Blow”

  1. Teena Parsons on February 24th, 2010 3:31 pm

    Thanks to Fincial Solutions Inc & Echo Loans we lost $1,500 of our money we need. Guaranteed to be returned, but hasn’t of course. Hope we can get it back and I will try!

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