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FTC sends payments to people who paid for mortgage debt relief

The FTC is sending payments totaling more than $1.2 million to 6,261 people who paid fees to Consumer Defense in a deceptive mortgage loan relief scam. The scam used several business names including Preferred Law, American Home Loans, and Modification Review Board.

The FTC sued Consumer Defense and related businesses for running an illegal mortgage relief scam. According to the lawsuit, the defendants falsely promised to help struggling homeowners, claiming that their legal experts would make mortgage payments more affordable. Instead, the defendants collected illegal upfront fees and unlawfully told homeowners not to pay their mortgages to or communicate with their lenders. The defendants were permanently banned from the debt relief business and required to pay money to provide refunds.

If you get a check, please cash it within 90 days.

You can find answers to common questions about FTC refund payments on our FAQ page. If you have any other questions, please call the refund administrator at 1-877-595-0141.