Brief

Here is a summary of the provided document:

Summary:

The Federal Trade Commission (FTC) is sending over $1.2 million in refunds to 6,261 consumers who lost money to Consumer Defense, a deceptive mortgage modification scheme. The scheme, which operated under various names, deceived homeowners by charging them unlawful upfront fees and falsely promising loan modifications. The FTC's complaint was filed in 2018, and the defendants were ordered to pay refunds to harmed consumers. The case was appealed, but an appellate court upheld the ruling, and the district court entered a monetary judgment under Section 19 of the FTC Act. The FTC is providing refunds to consumers and urges them to cash their checks within 90 days.

Enforcement

We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices.

View Enforcement

,

Search or browse
the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

,

Take action

,

Competition Matters

,

John Newman & Amy Ritchie, Bureau of Competition

,

,

Policy

We work to advance government policies that protect consumers and promote competition.

View Policy

,

Search or browse
the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

,

Take action

,

Technology Blog

,

Staff in the Office of Technology

,

,

Advice and Guidance

Learn more about your rights as a consumer and how to spot and avoid scams. Find the resources you need to understand how consumer protection law impacts your business.

,

Take action

,

Consumer Advice

,

Business Guidance

,

Servicemembers:
Your tool for financial readiness

Visit militaryconsumer.gov

,

Get consumer protection basics, plain and simple

Visit consumer.gov

,

Learn how the FTC protects free enterprise and consumers

Visit Competition Counts

,

Looking for competition guidance?

Competition Guidance

,

News and Events

,

,

,

Sign up for the latest news

Follow us on social media

         

,

About the FTC

Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity.

Learn more about the FTC

,

Looking for legal documents or records? Search the Legal Library instead.

,

Looking for legal documents or records? Search the Legal Library instead.

,

For Release

,

,

The Federal Trade Commission is sending more than $1.2 million in refunds to consumers who lost money to Consumer Defense, a deceptive mortgage modification scheme.

The FTC is sending payments to 6,261 consumers, who will receive $201.34 each. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, JND Legal Administration, at 877-595-0141 or visit the FTC website to view frequently asked questions. The Commission never requires people to pay money or provide account information to get a refund.

According to the FTC’s 2018 complaint, Consumer Defense operated under a number of names, including Preferred Law and American Home Loan Counselors, and deceived financially distressed homeowners by falsely promising to prevent foreclosure and make their mortgages more affordable. The defendants typically charged homeowners unlawful upfront fees in monthly installments of $650, falsely promising expert legal assistance. In many instances, consumers paid hundreds or thousands of dollars only to learn that the defendants had not obtained the promised loan modifications, and in some cases had never even contacted the lenders.

In 2019, a federal court ruled in favor of the FTC in the case, and ordered that the defendants’ assets be turned over to the FTC and liquidated to provide refunds to harmed consumers. The defendants, however, appealed the case, which was not resolved until 2022 when an appellate court upheld the ruling but sent the case back to the district court to re-enter the monetary judgment pursuant to Section 19 of the FTC Act after the U.S. Supreme Court’s 2021 ruling stating that the Commission lacks authority under Section 13(b) of the FTC Act to seek monetary relief in federal court. In 2023, the district court entered a monetary judgment under Section 19 of the FTC Act for the defendants’ violations of the Mortgage Assistance Relief Services Rule.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases.

,

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

,

Refund Administrator

,

JND Legal Administration

,

877-595-0141

,

Office of Public Affairs

,

202-326-2656

Highlights content goes here...

Summary:

The Federal Trade Commission (FTC) has issued a press release regarding the refund of over $1.2 million to consumers who were deceived by the Mortgage Defense scheme. The scheme, which operated under various names, deceived financially distressed homeowners by promising to prevent foreclosure and make their mortgages more affordable. However, the scheme’s operators charged homeowners unlawful upfront fees, ranging from hundreds to thousands of dollars, and failed to deliver on their promises. The FTC filed a complaint in 2018 and won the case in federal court in 2019. The defendants appealed the ruling, but an appellate court upheld the ruling in 2022. In 2023, the district court entered a monetary judgment against the defendants for their violations of the Mortgage Assistance Relief Services Rule.

The FTC is sending refunds to 6,261 consumers, each receiving $201.34, to compensate them for their losses. The Commission urges consumers to cash their checks within 90 days and to contact the refund administrator if they have any questions. The FTC warns consumers to beware of similar scams and encourages them to report fraud, scams, and bad business practices at ReportFraud.ftc.gov.

In summary, this press release highlights the FTC’s efforts to protect consumers and promote competition by enforcing federal laws and providing refunds to those who have been harmed by deceptive business practices.

Federal Trade Commission

Quick Insight
RADA.AI
RADA.AI
Hello! I'm RADA.AI - Regulatory Analysis and Decision Assistance. Your Intelligent guide for compliance and decision-making. How can i assist you today?
Suggested

Form successfully submitted. One of our GRI rep will contact you shortly

Thanking You!

Enter your Email

Enter your registered username/email id.

Enter your Email

Enter your email id below to signup.

Enter your Email

Enter your email id below to signup.
Individual Plan
$125 / month OR $1250 / year
Features
Best for: Researchers, Legal professionals, Academics
Enterprise Plan
Contact for Pricing
Features
Best for: Law Firms, Corporations, Government Bodies