Foreclosure rescue fraud — A Florida company that made false promises that it could help homeowners avoid foreclosure has agreed to pay $2.4 million to settle a lawsuit brought by the FTC. Home Assure LLC typically charged consumers an upfront fee ranging from $1,500 to $2,500 but did little or nothing to help them avoid foreclosure, the lawsuit alleged. Under the settlement, the company agreed to refrain from making false promises.
No debt relief, no fee — Starting in October, for-profit companies that help consumers reduce credit-card debt won’t be able to charge fees until they’ve successfully renegotiated the debt, the FTC said. The advance-fee ban was aimed to prevent these companies from collecting fees and then failing to perform services for consumers, said FTC Chairman Jon Leibowitz. “Too many of these companies pick the last dollar out of consumers’ pockets and, far from leaving them better off, push them further into debt — even bankruptcy,” he said. In order to charge a fee, the companies will need to reduce or renegotiate at least one debt, the FTC said.
