The Federal Trade Commission (FTC) is distributing refunds to consumers who were affected by a fraudulent mortgage relief scheme. The operation, which promised mortgage modifications to financially distressed homeowners, was found to have misappropriated their payments instead.
In 2015, the FTC filed a lawsuit against the defendants operating under the names HOPE Services and HouseHoldRelief. The complaint accused them of targeting homeowners facing foreclosure, especially those unsuccessful in obtaining lender assistance. They posed as a "nonprofit" with government connections, claiming high success rates and special contacts for loan modifications. However, according to the complaint, no mortgages were modified, and lenders did not receive any funds from these payments.
Refund checks amounting to over $49,000 are being sent out by the FTC to 198 consumers. Each recipient will receive $251.36 and should cash their checks within 90 days as stated on the check itself. For questions regarding payments, consumers can contact Analytics at 855-715-2919 or visit the FTC website for FAQs about the refund process. Importantly, the Commission does not require payment or account information for issuing refunds.
The FTC's interactive dashboards provide detailed state-by-state data on refunds issued in its cases. In 2023 alone, FTC actions resulted in $330 million in consumer refunds nationwide.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. The agency emphasizes that it will never ask for money or personal financial details nor promise prizes as part of its operations. Consumers can learn more about various topics at consumer.ftc.gov or report fraudulent activities at ReportFraud.ftc.gov.
