Archive for July 30th, 2010
Home Assure LLC, Mortgage Relief Marketer Will Return $2.4 Million to Consumers to Settle Charges
July 30th, 2010. Published under Fraud, Scams. No Comments.
A company that deceived consumers with promises it could save their homes from foreclosure will pay $2.4 million to victims as part of a settlement with the Federal Trade Commission. The case is part of the agency’s continuing crackdown on scams that prey on financially distressed homeowners. According to the FTC’s complaint, Home Assure LLC conducted a nationwide marketing campaign designed to take advantage of struggling homeowners by offering so-called mortgage foreclosure rescue services. Home Assure typically charged consumers an up-front fee of $1,500 to $2,500. The company’s representatives falsely claimed that its special relationships with lenders would enable it to get favorable loan modifications or stop foreclosure, and that the company had helped thousands of consumers avoid foreclosure. One of the claims on its website was, “If we are unable to negotiate a plan with your lender that improves your situation or gives you a viable strategy to avoid foreclosure, we will refund 100% of your money. . . No questions asked!” According to the FTC, however, Home Assure did little or nothing to help consumers avoid foreclosure. In numerous instances the company refused to pay refunds, sometimes claiming that consumers did not meet the terms of the contract for a refund or that they had breached the contract by contacting their lender or filing for bankruptcy, and sometimes without giving a reason. (4/6/2009 release http://www.ftc.gov/opa/2009/04/hud.shtm ; 11/24/2009 release http://www.ftc.gov/opa/2009/11/stolenhope.shtm ) The settlement order imposes a $2.4 million judgment on Home Assure and bans the company from selling mortgage loan modification and foreclosure relief services. The order also permanently prohibits Home Assure from misrepresenting any good or service, disclosing or benefitting from customers’ personal information, and failing to dispose of customer information properly. The Commission vote to authorize staff to file the stipulated final order was 5-0. The order was filed in the U.S. District Court for the Middle District of Florida, Tampa Division. NOTE: Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics .
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Home Assure LLC, Mortgage Relief Marketer Will Return $2.4 Million to Consumers to Settle Charges
NEW FTC Rule to Protect Consumers in Credit Card Debt
July 30th, 2010. Published under Fraud, Scams. No Comments.
Amendments to Telemarketing Sales Rule Prohibiting Debt Relief Companies From Collecting Advance Fees Will Take Effect in October 2010 Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt. “At the FTC we strive every day to make sure America’s middle class families get straight deals for their dollars,” Chairman Jon Leibowitz said. “This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, up-front fees. Too many of these companies pick the last dollar out of consumers’ pockets – and far from leaving them better off, push them deeper into debt, even bankruptcy.” Three other Telemarketing Sales Rule provisions to take effect on September 27, 2010, will: require debt relief companies to make specific disclosures to consumers; prohibit them from making misrepresentations; an extend the Telemarketing Sales Rule to cover calls consumers make to these firms in response to debt relief advertising. The Final Rule covers telemarketers of for-profit debt relief services, including credit counseling, debt settlement, and debt negotiation services. The Final Rule does not cover nonprofit firms, but does cover companies that falsely claim nonprofit status. Over the past decade, the FTC and state enforcers have brought a combined 259 cases to stop deceptive and abusive practices by debt relief providers that have targeted consumers in financial distress. Advance Fee Ban The Final Rule contains specific requirements for debt relief providers related to charging an advance fee before providing any services. It specifies that fees for debt relief services may not be collected until: the debt relief service successfully renegotiates, settles, reduces, or otherwise changes the terms of at least one of the consumer’s debts; there is a written settlement agreement, debt management plan, or other agreement between the consumer and the creditor, and the consumer has agreed to it; and the consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider. To ensure that debt relief providers do not front-load their fees if a consumer has enrolled multiple debts in one debt relief program, the Final Rule specifies how debt relief providers can collect their fee for each settled debt. First, the provider’s fee for a single debt must be in proportion to the total fee that would be charged if all of the debts had been settled. Alternatively, if the provider bases its fee on the percentage of what the consumer saves as result of using its services, the percentage charged must be the same for each of the consumer’s debts. Dedicated Account for Fees and Savings Another new provision of the Final Rule will allow debt relief companies to require that consumers set aside their fees and savings for payment to creditors in a “dedicated account.” However, providers may only require a dedicated account as long as five conditions are met: the dedicated account is maintained at an insured financial institution; the consumer owns the funds (including any interest accrued); the consumer can withdraw the funds at any time without penalty; the provider does not own or control or have any affiliation with the company administering the account; and the provider does not exchange any referral fees with the company administering the account. Disclosures and Prohibited Misrepresentations Under the Final Rule, providers will have to make several disclosures when telemarketing their services to consumers. Before the consumer signs up for any debt relief service, providers must disclose fundamental aspects of their services, including how long it will take for consumers to see results, how much it will cost, the negative consequences that could result from using debt relief services, and key information about dedicated accounts if they choose to require them. The Final Rule also prohibits misrepresentations about any debt relief service, including success rates and whether the provider is a nonprofit entity. The FTC’s Statement of Basis and Purpose, which accompanies the Final Rule, provides extensive guidance about the evidence providers must have to make advertising claims commonly used in selling debt relief services. The Rulemaking Process In August 2009, the FTC published in the Federal Register a notice of proposed rulemaking proposing amendments to the Telemarketing Sales Rule and requesting public comments. Over 300 commenters, representing a wide variety of stakeholders, submitted comments in response. The Commission also held a public forum on the proposed amendments on November 4, 2009. The FTC developed the Final Rule based on the public comments, the record of the public forum and the FTC’s September 2008 Workshop on the debt settlement industry, recent testimony before Congress, and law enforcement actions brought by the Commission and the states. Information for Businesses Today, the FTC staff issued a compliance guide to help businesses comply with the new debt relief rules. The compliance guide describes the key changes to the Telemarketing Sales Rule affecting debt relief services, helps businesses determine if they are covered by the new rules, details information that covered entities must disclose to customers, and discusses how fees may now be collected. It can be found at http://www.ftc.gov/bcp/edu/pubs/business/marketing/bus72.pdf on the agency’s website and is linked to this press release. The FTC vote approving publication of the Federal Register notice was 4-1, with Commissioner J. Thomas Rosch voting no. The notice will be published in the Federal Register shortly, and is available now on the FTC’s website at http://www.ftc.gov/os/2010/07/R411001finalrule.pdf . The provisions of the Final Rule will take effect on September 27, with the exception of the advance fee ban provision, which will take effect on October 27. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm .
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NEW FTC Rule to Protect Consumers in Credit Card Debt
Economy puts soft brake on boo
July 30th, 2010. Published under Tea Party. No Comments.
With the economy on the rocks, Montanans tempered their thirst for alcohol last year, according to state sales figures showing a rare growth decline.
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Economy puts soft brake on boo
Economy heading for 3pc growth
July 30th, 2010. Published under Tea Party. No Comments.
Key Points Economic growth December quarter: 0.8 per cent Market average forecast: 0.8 per cent
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Economy heading for 3pc growth
lightverdict
July 30th, 2010. Published under Tea Party. No Comments.
Cheers for the Kun’sed’http://www.mycheapedhardy.com”ed hardy ~ BabyCheers for the Kun’s[url=http://www.mycheapedhardy.com]ed hardy[/url] ~ Baby
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