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2 scam companies banned from offering mortgage relief

Dealing with debt or foreclosure is stressful. When you find out that you have become the victim of a scam dealing with mortgage relief or debt relief, the stress level increases. Orlando residents might like to read about two companies that have been banned by the Federal Trade Commission from offering debt relief or mortgage relief services.

Under the Distressed Homeowner Initiative, the FTC charged Home Guardian Management Solutions and American Mortgage Consulting Group with offering consumers false promises of lowered mortgage payments. The owner of the companies has settled with the FTC. In addition to being banned from offering mortgage relief or debt relief services, both companies will surrender all assets in exchange for suspending a $514,910 judgment against the companies.

The list of allegations against these companies is lengthy. They were charged with falsely claiming to be affiliated with the government, falsely claiming to provide legal representation for clients and falsely stating full refunds would be issued if loan modification wasn't possible for a client. The companies also charged substantial up-front fees of $1,495 to $4,495, which violates the FTC Act and the Mortgage Assistance Relief Services Rule.

Another company that has been banned from offering debt relief and mortgage relief services is Southeast Trust, LLC. This company allegedly offered consumers promises of significantly lowered credit card interest rates, some as low as 0 percent, in exchange for hundreds of dollars. The company also promised consumers that with one monthly payment and very low interest, they would be debt-free in three to five years. The company was also charged with calling consumers registered on the "Do Not Call Registry."

As part of the settlement with this company, the FTC banned it from offering any debt-relief or mortgage-relief services. It also banned the company from calling consumers on the "Do Not Call Registry" and from initiating robocalls to consumers. It can't collect any further payments from customers and must destroy all confidential information given to the company by consumers. The company also has a suspended $2.7 million settlement amount, which will become due if the FTC determines the company lied about financial information.

If you are going through foreclosure or facing high credit card debt, contacting an Orlando attorney might help you determine an appropriate course of action to avoid scams and become debt-free.

Source:  LoanSafe.org, "FTC Cracks Down on Two Phony Debt & Mortgage Relief Companies" Alex Ferreras, Dec. 13, 2013

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