Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Alleged mortgage relief scammer to pay $800K settlement in FTC suit, (Dec 15, 2014)

FMC Counseling Services, Inc. has agreed to pay over $800,000 to settle FTC charges that the company violated the FTC Act and the Mortgage Assistance Relief Services Rule. The Commission filed a complaint against FMC in July 2014, alleging that FMC misrepresented to distressed homeowners that it could lower their mortgage payments and interest rates, or prevent foreclosure. In addition, the Commission claimed that FMC allegedly deceived consumers into making one or more mortgage payments directly to FMC, while failing to obtain any relief for homeowners (FTC v. FMC Counseling Services, Inc., File No. 142 3052, Case No. 0:14-cv-61545-WJZ).

In addition to remitting $815,865 to the Commission, the stipulated final order prohibits FMC from advertising, marketing, promoting, or selling secured or unsecured debt relief products or services. The order also bans FMC from making any misrepresentation relating to financial or any other products and services. Lastly, the company is prohibited from disclosing customer information or collecting from any consumer who supposedly purchased or agreed to purchase any mortgage assistant relief product or service from FMC.

Attorneys: David Rothman (Rothman & Associates, P.A.) for FMC Counseling Services, Inc. James Davis, Federal Trade Commission.

Companies: FMC Counseling Services, Inc.

News: ConsumerProtection FederalTradeCommissionNews