On July 20, 2020, the Consumer Financial Protection Bureau (CFPB) announced that the United States District Court for the Central District of California had entered its stipulated final judgment with a foreclosure relief services company and its owner, resolving allegations that the defendants had engaged in deceptive and abusive acts or practices by allegedly charging illegal advance fees to consumers in violation of Regulation O of the Consumer Financial Protection Act.
The CFPB alleged that the defendants made unsubstantiated representations about the company’s ability to help customers avoid foreclosures or to successfully negotiate loan modifications, as well as allegedly deceptive statements about the experience and qualifications of the employees performing those services. In addition, the CFPB alleged that the company charged unlawful upfront fees for its mortgage assistance relief services.
The settlement permanently bans the company and its owner from offering mortgage assistance relief services or financial advisory services, imposes a suspended judgment for consumer redress of $3 million, and imposes a $40,000 civil money penalty.
The post CFPB Announces Settlement with Foreclosure Relief Services Company appeared first on Consumer Finance Insights (CFI).