Tampa Based Pay Day Loan Scheme

Federal Trade Commission, a U.S. district court has halted a Tampa, Fla.-based operation that promised to help consumers get payday loans.

The FTC alleges that defendants Sean C. Mulrooney and Odafe Stephen Ogaga and five companies they controlled used websites with the names Vantage Funding, Ideal Advance, Loan Assistance Company, Palm Loan Advances, Loan Tree Advances, Pacific Advances, and Your Loan Funding to collect consumers’ information. They collected names, Social Security numbers, bank routing numbers, and bank account numbers, which allowed them to access consumers’ checking accounts.

The defendants victimized tens of thousands of consumers, taking more than $5 million from their bank accounts, the agency alleges.

In two previous cases, American Credit Crunchers, LLC and Broadway Global Master Inc., the defendants allegedly attempted to collect on payday loan debts that either didn’t exist or weren’t owed to them.
For additional consumer information on payday loans, see, Online Payday Loans.

Bank of America Lied to Homeowners and Rewarded Foreclosures, Former Employees Say

Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.

http://www.propublica.org/article/bank-of-america-lied-to-homeowners-and-rewarded-foreclosures

Consumer WARNING

Some fraudsters attempted to disguise themselves as government agencies by displaying government seals or adopting names similar to a government agency. They promise to help borrowers modify their loans through the Home Affordable Modification Program (HAMP).


SIGTARP warns homeowners to seek modifications through their servicers or contact a HUD-approved housing counselor at 1-888-995-HOPE (4673).

Consumer Warning

Some fraudsters attempted to disguise themselves as government agencies by displaying government seals or adopting names similar to a government agency. They promise to help borrowers modify their loans through the Home Affordable Modification Program (HAMP).


SIGTARP warns homeowners to seek modifications through their servicers or contact a HUD-approved housing counselor at 1-888-995-HOPE (4673).

FTC Seeks Return of More Than $275 Million in Billing Scheme

A federal court has frozen the assets of corporations and an individual behind a vast Internet enterprise that allegedly made more than $275 million after luring consumers into "trial" memberships, and bogus government-grant and money-making schemes, Collections & Credit Risk reported on Tuesday. The court froze the assets of 61 corporations (collectively known as "I Works") and their alleged leader, Jeremy Johnson. It placed assets for these defendants under the control of a court-supervised receiver to help ensure that funds are available for consumer restitution when the case is concluded.


http://www.collectionscreditrisk.com/news/ftc-seeks-return-of-more-than-in-massive-billing-scheme-3004892-1.html?zkPrintable=true

House Panel Approves FHA Reform Measure

A bill to crack down on fraudulent brokers and lenders moved out of the House Financial Services Committee yesterday after majority Democrats warded off GOP amendments to require higher down payments and tougher lending standards for Federal Housing Administration mortgages, CongressDaily reported today. Rep. Ron Klein (D-Fla.) along with co-sponsor Rep. Maxine Waters (D-Calif.) said the bill also creates a cash incentive for mortgage servicers to reach out to financially troubled homeowners and advise them on options to avoid foreclosure. The bill could be on the floor as early as next week.

Thanks to ABA Headline News