Host of Debt Relief Companies Sued by FTC Under Sealed Complaint

By on January 19, 2018

On January 8, 2018, the Federal Trade Commission filed suit against Consumer Defense, Consumer Link, Prefered Law, American Home Loan Counselors, American Home Loans, Consumer Defense Group, Modification Review Board, Brown Legal AM Property Management, FMG Partners, Zinly, Jonathan Hanley, Benjamin Horton, and Sandra Hanley.

The Defendants, in this case, are names I recognize from past articles on this site. The one that comes to mind is this one where Benjamin Horton and Preferred Law sent me a sternly worded nastygram.

On January 18, 2018, the seal was lifted on the case and the order to freeze assets. The unsealed complaint says from at least 2011 the Defendants have “engaged in a course to advertise, market, sell, provide, offer to provide, or arrange for others to provide mortgage assistance relief services (MARS), including mortgage loan modification services, loan document audits, and services to stop or avoid foreclosure.”

The FTC states, “Defendants have preyed on financially distressed homeowners by luring them into signing contracts for MARS services with promises that they will receive expert legal assistance from Defendants’ attorneys that will stop them from going into foreclosure and modify their mortgage loans to make their payments more affordable. Defendants have touted a perfect or nearly perfect track record of success in obtaining modifications, such as 98-100%, including with particular lenders, and in many instances have provided a guarantee that they will not fail to obtain modifications for their customers.”

The complaint says consumers were typically charged $3,900 up front and then monthly installments of $650 “depending on how much the consumer is willing to pay.” The advance fees for service do run into a conflict with which says no advance fees are allowed.

What makes this case interesting is it was filed by attorneys from the Federal Trade Commission and the Acting U.S. Attorney in Nevada.

READ  American Home Loan Counselors - Consumer Complaint - February 10, 2015

You can read the full previously sealed complaint here.

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s and and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Euro-Video and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Share a Comment / Leave a Reply

%d bloggers like this: