NYC "Loan Scam Busters" Hit The Streets Of South Jamaica Targeting Side-Of-The-Road "Bandit" Signs Peddling Foreclosure Rescue Programs

In South Jamaica, Queens, the Queens Tribune reports:

• Volunteers took to the streets of Southeast Queens [last week] to help the City crack down on the vultures who prey on victims of the foreclosure crisis. The City Dept. of Consumer Affairs ["DCA"], partnering with NeighborWorks America, enlisted volunteers to bike through South Jamaica on July 31 to find and report deceptive foreclosure prevention ads posted in the neighborhood.

• For several months DCA has been canvassing neighborhoods in Queens and Brooklyn on foot documenting foreclosure scam ads and talking to residents about the fraudulent foreclosure aid practices they see happening in their area. These volunteers also give information to those who are in danger of losing their homes on getting free counseling from the city.

• This event marked the first time the volunteers, known as “loan scam busters,” used bicycles donated by Bike and Roll to canvass the entire neighborhood, enabling the DCA to cover a larger area faster. Volunteers armed with cameras and DCA forms for documenting advertising information – including where the advertisement was spotted, what type of ad it was and a brief description – headed out in teams of two at 11 a.m., after a brief training session on what to look for and where to look.

• “This is a dual purpose [campaign] – to educate and document,” said Amelia Erwitt, chief of staff for the DCA Office of Financial Empowerment. [...] The NYC Distressed Property Consultant Law was recently passed in an effort to stop predatory advertisements in neighborhoods hit hardest by foreclosure. The new law, aimed at printed materials, requires that ads state certain disclaimers, including no guarantee to stop foreclosure proceedings, that consultants cannot take money up front and consultants cannot retain original loan documents.(1)

• This law will make it easier for loan scammers to be prosecuted for predatory practices and enables DCA to gather more information about the foreclosure ads and ensure they are in compliance with the law.

For the story, see Fighting Predators Door-To-Door.

(1) The law also prohibits the consultant from snagging a power of attorney from a homeowner. New York City Administrative Code - Subchap. 5 - §20-723.3(b)(1)(iii).