WASHINGTON, D.C. – September 2, 2011 – (RealEstateRama) — The FTC has amended its complaint against U.S. Mortgage Funding, Inc. by adding as a defendant Louis Gendason.Â The amended complaint also asks the court to issue a preliminary injunction against Gendason that will reduce the chance of consumer injury and preserve the possibility of consumer redress while the defendants await trial.
The FTC alleges that the defendants in this case falsely promised financially distressed consumers that either they would get loan modifications to make their mortgages much more affordable or the consumers would get a full refund, if the defendants were unsuccessful.Â The defendants charged up to $2,600 for their supposed services and typically asked for half of the fee up-front, claiming a success rate of up to 100 percent.
After the FTC filed its original complaint against the defendants in February 2011, Commission staff learned that although Louis Gendasonâ€™s name did not appear on corporate records, he, along with other defendants, had been running U.S. Mortgage Funding, Inc. and Lower My Debts.Com, LLC.
The Commission vote approving the amended complaint was 5-0.Â The FTC filed the amended complaint in the U.S. District Court for the Southern District of Florida on July 26, 2011.Â (File No. 1023146; the staff contact is Jessica D. Gray, Southeast Region, 404-656-1350.)
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.Â To file a complaint in English or Spanish, visit the FTCâ€™s online Complaint Assistant or callÂ 1-877-FTC-HELP (1-877-382-4357).Â The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad.Â The FTCâ€™s website provides free information on a variety of consumer topics. Â Like the FTC on Facebook and follow us on Twitter.
- MEDIA CONTACT:
- Office of Public Affairs
- FTC Stops Bogus Mortgage Loan Modification Business
WASHINGTON, D.C. - June 21, 2011 - (RealEstateRama) -- Under a settlement with the Federal Trade Commission, a federal court banned three men and their company from the mortgage modification business and ordered them to pay nearly $19 million for consumer refunds. The defendants allegedly deceived distressed homeowners with phony claims that they would negotiate with lenders to modify their...
- FTC Action Puts Deceptive Marketer Out of the Debt Relief Business
WASHINGTON, D.C. - December 6, 2010 - (RealEstateRama) -- A deceptive advertising operation has been banned from the debt relief business under a settlement agreement with the Federal Trade Commission. As part of a continuing crackdown on scams that target consumers in financial distress, the FTC charged the defendants with deceptively claiming they could save consumers thousands of dollars by...
- FTC Charges Mortgage Relief Operation with Deceiving Distressed Homeowners
WASHINGTON, D.C. - March 7, 2011 - (RealEstateRama) -- As part of the Federal Trade Commissionâ€™s continuing crackdown on scams that target homeowners behind in their mortgage payments or facing foreclosure, the FTC has charged a national operation with marketing bogus loan modification services. The FTC seeks to stop the illegal practices and make the defendants pay refunds to consumers...
- FTC Issues New Rule Strengthening Consumer Protections Against Deceptive Mortgage Advertisements
WASHINGTON, D.C. - July 20, 2011 - (RealEstateRama) -- A new Federal Trade Commission Rule will strengthen consumer protections by banning deceptive claims about consumer mortgages in advertising or other types of commercial communications. The Rule is designed to create a level playing field for legitimate businesses to compete in the marketplace....
- FTC Settlement Collects $2.2 Million, Bans Marketers From Mortgage Relief Business
WASHINGTON, D.C. - April 11, 2011 - (RealEstateRama) -- Under a settlement with the Federal Trade Commission, two companies and three individuals are banned from the mortgage relief services business and must relinquish $2.2 million in assets for consumer refunds. The action is part of the FTCâ€™s ongoing effort to stop scams that target financially strapped homeowners seeking mortgage relief....
- ERC and NCLR Investigation Uncovers Housing Discrimination against Latinos in Three Major Metropolitan Areas
- HUD AND CITY OF DUBUQUE, IOWA SETTLE ALLEGATIONS OF DISCRIMINATION AGAINST AFRICAN AMERICANS
- Builder Confidence Holds Steady in April
- Construction Industry Reminded of High Effective Rate on Tax Day
- DOL-VETS Announces Availability of HVRP Funds
- Landlord and Property Manager Workshop
- World Renowned Developer Gerald Hines to Address NAREEâ€™s June ‘Uptown Energy’ Real Estate Journalism Conference in Houston
- HUD, NEBRASKA REACH AGREEMENT ON LANGUAGE ACCESS TO HOUSING PROGRAMS
- HUD Properties Available for Homeless Services
- Natural Yard Care â€śHow toâ€ť Workshops – A Big Win for Homeowners
- Mortgage Complaints Skyrocket in 2013