WASHINGTON—The Federal Trade Commission is sending refunds to consumers who paid a “sham” mortgage relief operation that told financially distressed homeowners it would help get their mortgages modified, but instead effectively stole their mortgage payments, the FTC said.
The FTC first filed suit against the defendants, who operated under the names HOPE Services and HouseHoldRelief, in 2015. The complaint charged that the defendants targeted consumers facing foreclosure, especially those who had failed to get any relief from their lenders.
“Pretending to be a ‘nonprofit’ organization with government ties, they falsely claimed they had a high success rate, special contacts who would help get loan terms modified, and an ability to succeed even when consumers had failed previously. Instead, the complaint alleged, homeowners who made payments did not have their mortgages modified, and their lenders never received the funds,” the FTC said.
The FTC is sending checks totaling more than $49,000 to 198 consumers, who will receive $251.36 each.