Thursday, May 01, 2008

Feds File Civil Charges Against Ohio-Based Foreclosure Rescue Operator

The Federal Trade Commission announced earlier this week:
  • The Federal Trade Commission has charged Foreclosure Solutions, LLC and Timothy A. Buckley with operating a nationwide mortgage foreclosure “rescue” scam that charged consumers as much as $1,200 to save their homes from foreclosure but failed to do so. The FTC seeks to bar them from further law violations and make them forfeit their ill-gotten gains. According to the FTC’s complaint, the defendants market their services through direct mail to consumers named in court records of foreclosure actions and through Internet Web sites, including www.program10.com and http://www.foreclosuresolutionsusa.net/ (if link expires, try here).

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  • According to the complaint, the defendants hire attorneys to respond to the foreclosure complaints filed against consumers. In many instances, the attorneys file the same form response to every complaint, usually without investigating consumers’ individual circumstances that might identify defenses or counterclaims unique to particular consumers.

For more, see FTC Charges Mortgage Foreclosure “Rescuers”.

To view the lawsuit and a copy of a sample solicitation (at pages 10-12 of lawsuit), see FTC v. Foreclosure Solutions, LLC, and Timothy A. Buckley.