The FTC has amended its complaint against U.S. Mortgage Funding, Inc. by adding Louis Gendason as a defendant. 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. 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 Gendason’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. The FTC filed the amended complaint in the U.S. District Court for the Southern District of Florida on July 26, 2011. (File No. 1023146; the staff contact is Jessica D. Gray, Southeast Region, 404-656-1350.)
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