Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC obtains $13.5M judgment in deceptive mortgage relief scheme suit, (Aug 16, 2016)

By Greg Hammond, J.D.

Operators of various mortgage relief operations have been ordered to pay more than $13.5 million after the FTC obtained summary judgment against them for participating in deceptive and unfair acts or practices in violation of the FTC Act, the FTC’s Telemarketing Sales Rule, and the Mortgage Assistance Relief Services Rule. The federal district court in Jacksonville, Florida, also permanently enjoined the operators from making misrepresentations concerning financial products and services (FTC v. Lanier Law LLC, Dkt. 3:14-cv-00786-MMH-PDB).

The FTC filed complaints against the operators of six alleged mortgage relief operations in 2014, as part of "Operation Mis-Modification." Lanier Law LLC and others misrepresented that they would lower distressed homeowners’ mortgage payments and interest rates, or prevent foreclosure, while illegally charging advance fees, the FTC alleged. Summary judgment was granted in the instant suit in July 2016.

The final order for permanent injunction prohibits the defendants from: (1) advertising, marketing, promoting, selling, or assisting others in marketing or selling any secured or unsecured debt relief product or service; (2) misrepresenting the terms or rates that are available for any loan or other extension of credit; (3) misrepresenting the ability to improve or otherwise affect a consumer’s credit record, rating, or history, among other misrepresentations concerning financial products and services; and (4) engaging in abusive telemarketing practices, such as calling any telephone number on the National Do Not Call Registry.

The defendants also are required to pay a judgment in the amount of $13,586,713, which represents the amount of unjust enrichment caused by the deceptive conduct.

Companies: Lanier Law, LLC

News: ConsumerProtection FederalTradeCommissionNews