Spanish-Speaking Consumers Fraudulently Targeted By Bogus Mortgage Foreclosure "Rescue Services"
In the wake of rising unemployment claims and mortgage foreclosures, Spanish-speaking consumers are being unfairly preyed upon by unscrupulous businesses who promise to stop foreclosure proceedings only to have consumers ultimately lose their homes despite paying significant sums of money to such “rescue operation” services. Recently, in a lawsuit filed in Los Angeles, California the Federal Trade Commission ("FTC") charged a mortgage foreclosure “rescue operation” with falsely promising Spanish-speaking consumers who are behind on their mortgage payments that it would stop foreclosure. Many people who paid the “rescue service” ultimately lost their homes, and others avoided foreclosure only through their own efforts. At the FTC’s request, a federal court temporarily halted the defendants’ practices and froze their assets.
According to the FTC’s complaint, the defendants enticed consumers with false claims in Spanish-language radio and magazine ads, and during in-person consultations. The defendants charged consumers an up-front fee equivalent to each consumer’s monthly mortgage payment, which was typically in the thousands of dollars. In numerous instances, however, the defendants did not stop foreclosure proceedings from occurring or obtain mortgage loan modifications.
If you have been the victim of a mortgage foreclosure “rescue operation,” please contact us.