WASHINGTON—The Federal Trade Commission is mailing 862 refund checks totaling more than $533,000 to consumers deceived by a phony mortgage relief scheme allegedly perpetrated by a company called A to Z Marketing, Inc.
Many homeowners who paid for the bogus “service” are not starting to receive refunds, with the average check totaling $619.24 and representing 26% of the money consumers lost, the FTC stated.
According to the FTC’s December 2013 amended complaint, A to Z Marketing and several other defendants operated loan modification schemes, falsely claiming they would provide legal help to save homeowners from foreclosure and lower their mortgage payments. The defendants then charged upfront fees of between $2,500 and $3,500, but delivered little or no help, deepening the financial distress of these homeowners.
The enterprises marketed their scheme online, through telemarketing calls, and with television and radio ads. Their websites deceptively touted a range of services, including bankruptcy advice, credit counseling, and “forensic mortgage audits.” They falsely promised that these audits would uncover any “lending violations” committed by lenders that would help avert foreclosure and lower mortgage payments, the FTC stated.
The court order settling the FTC’s charges banned the defendants from advertising, promoting, or selling unsecured debt relief products and services; misrepresenting any material facts related to financial products or services; misrepresenting material facts related to any other types of services; and benefiting from any consumer information they collected through the scheme. It also required them to refund money to defrauded consumers.