Wednesday, August 8, 2012

Federal Court Slams Brakes On Dominican Republic-Based Upfront Fee Loan Mod Scam Pretending To Be In Chicago; Racket Targeted Spanish-Speaking Victims

From the Federal Trade Commission (Washington, D.C.):

  • At the request of the Federal Trade Commission, a U.S. district court has halted a nationwide scam operating from the Dominican Republic – but pretending to be in Chicago – that allegedly peddled fake mortgage assistance relief to financially distressed Spanish-speaking homeowners in the United States.

    The defendants promised to dramatically lower homeowners’ monthly mortgage payments in exchange for a hefty upfront fee, and collected more than $2 million in fees during the last three years, but failed to provide homeowners with the promised services, according to the FTC complaint.

    Speaking in Spanish and targeting homeowners behind in their payments or facing foreclosure, the telemarketers would empathize about the tough economy and claim to provide information about federal mortgage assistance programs, according to the complaint.

    In lengthy sales calls, the telemarketers would lie to create a sense of trust, falsely claiming to be affiliated with or approved by the consumers’ lenders or the government, and “making sure to mention President Obama or the Making Home Affordable Program by name,” according to documents filed with the court.
For the FTC press release and links to court documents, see FTC Action Halts Dominican Mortgage Assistance Scam That Allegedly Defrauded Spanish-Speaking U.S. Homeowners of more than $2 Million (Court Issues Restraining Order against Telemarketers Who Falsely Claimed Affiliation with Federal Mortgage Assistance Programs).

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