FTC CHARGES MORTGAGE RELIEF OPERATION WITH DECEIVING DISTRESSED HOMEOWNERS

The Federal Trade Commission (FTC) announced yesterday that it has charged a national operation with marketing bogus loan modification services, according to an FTC press release. U.S. Mortgage Funding Inc., Debt Remedy Partners Inc., Lower My Debts.com LLC, David Mahler, Jamen Lachs and John Incandela, Jr. allegedly violated the FTC Act and the FTC's Telemarketing Sales Rule by falsely claiming they would obtain mortgage modifications that would make consumers' loan payments substantially more affordable. According to the FTC's complaint, the defendants targeted financially distressed consumers using direct mail, the Internet and telemarketing, and falsely promised they would get loan modifications to make consumers' mortgages much more affordable, or fully refund their money if they failed. The defendants charge up to $2,600 for their services and typically ask for half of the fee up-front, claiming a success rate of up to 100 percent.
 
http://www.ftc.gov/opa/2011/03/usmortgage.shtm