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Florida group agrees to settle alleged mortgage relief scam suit

As many people in the Miami area continue to struggle with the economy, some of them are finding it difficult to stay on top of their financial situation, including staying current on their mortgages. There are several legitimate services that can help. However, there are other companies who may not have the consumer's best interest in mind.

Several Florida companies and their owners have agreed to settle complaints against them in an alleged mortgage relief scam. According to the FTC, the 11 companies and five people have agreed to pay $3.6 million to settle the suit. The FTC says that the companies used deceptive trade practices in an alleged scam to help people find relief from their mortgages, which was part of the Distressed Homeowner Initiative.

According to court papers, the scheme attempted to attract consumers by promising them that their mortgages would be reduced or that their homes would be saved if they would enroll in the program. The FTC says that homeowners paid as much as $750 a month in advanced fees that were illegal, but they received no real help. The FTC says that the defendants will no longer be allowed to provide debt and mortgage relief and that their assets will be frozen until the settlement is paid.

It's unfortunate that individuals and businesses take certain measures to take advantage of others. However, when these kinds of situations happen, the victims are not hopeless. There are attorneys who can help with this kind business litigation. Therefore, if a person in the Miami area needs help with a business dispute he or she should probably contact an experienced business litigation attorney.

Source: Bradenton Herald, "Florida group surrenders $3.6M to settle fraud claims," Jan. 16, 2014

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