Deceptive Business Practices, FTC Announces New Enforcement Actions

The Good, The Bad, and the Ugly...........It's very hard for homeowners to know the difference between who is who, which companies are compliant and which are not. The Good, would be a legitimated loan modification company who is not charging a large fee, nor an upfront fee. A company that does not ask you for interest in your property or Power of Attorney, and one that will actually take you to the finish line. The Bad, are the companies that may have good intentions, but their intentions are compromised when it comes to making the money. They then concentrate more on acquiring more clients than they can actually handle. Eventually, this will catch up to them, they'll get complaints and they will get shut down. And then there's the Ugly....these are the companies that typically hide under "attorney based/backed umbrellas", as they do charge very large fees, the majority of which upfront. They will often base your fee off of your expected monthly savings, rather than having a set fee for their services. Many times, these companies are merely short sale agents that will say they want to help you get a modification, when they really just want to negotiate a short sale and propose it as the only option.
I think the FTC is finally on track as far as making that distinction. In a recent article on the FTC's website5 new companies were just brought under investigation for deceptive business practices. If you look at the common violation from most of the loan modification companies, it's because they are giving their customers unrealistic expectations, and then they are unable to come through. Anyone that tells you that they're going to get you a 2% fixed rate for the remainder of your term is lying to you. Any company that's charging you more than $3K for their services would be considered as a large fee. Companies that play "quid pro quo" with you, "You pay my upfront fee, and we'll send you the documents...." are generally hiding something.

At PMC, our contracted Negotiators are not only compliant to operate in the states they encompass, but they also don't paint their customers with promises of sunshine and rainbows, if it's really raining. PMC matched with our contracted Negotiators offer services that are far superior, and at a fraction of the cost. Our Negotiators are contracted to not charge upfront fees, and have supplied all the required documentation to demonstrate their legitimacy. Don't play the odds on something as important as your home and your money, contact PMC today and see what makes us a Different Kind of Company......