So you’ve received a Civil Investigative Demand (CID) from the Federal Trade Commission related to a consumer protection matter. Now what? We appreciate that it can be daunting for any company – especially a small business – and we want to be as transparent as possible about the process.
Blog Posts Tagged with Real Estate and Mortgages
Spoiler alert: If the villains in a thriller appear to be vanquished with 20 minutes left in the movie, you can bet they’ll make a dramatic reappearance. A case filed by the FTC targets a B2B tactic that small businesses started seeing years ago, but – to quote Poltergeist II – “They’re ba-ack.” And the defendants in the sequel have added what the FTC says is a bogus imposter angle.
For swimmers struggling to stay afloat, imagine this good news/bad news scenario. The good news: Someone throws a life preserver in your direction. The bad news: It’s made of concrete. According to an FTC lawsuit, that’s a rough analogy to the services that Damian Kutzner, Brookstone Law, Advantis Law, attorney Vito Torchia, Jr., and others offered to consumers caught in the undertow of foreclosure.
Why is it your business if identity theft victims can get free personal recovery plans and other help that makes it easier for them to report and recover from identity theft? Here’s an answer: Because it’s good business – for you, your customers, your employees, and your community.
As the name suggests, Green Tree Servicing was supposed to service homeowners’ mortgages by collecting and crediting monthly payments. But according to a $63 million settlement announced by the FTC and CFPB, rather than service, Green Tree gave many homeowners the business.
“What’s so funny ‘bout peace, love, and understanding?” Elvis Costello asked that musical question back in the day. The Memorandum of Understanding between the FTC and CFPB – which the two agencies just reauthorized for a three-year period – shows that when it comes to protecting consumers, ensuring a vibrant marketplace for financial products and services, and using resources efficiently, we're in harmony.
53 and it’s likely to go up. That’s the number of data security law enforcement actions the FTC has settled so far. The facts of each case are different, but distilled down to the basics, they stand for one central proposition: Your company’s data security measures should be reasonable and appropriate in light of the sensitivity and amount of consumer information you have, the size and complexity of your business, and the availability and cost of tools to improve security and reduce vulnerabilities.
Earlier this week was the 66th anniversary of the so-called Roswell UFO incident. No, Mulder and Scully aren't on temporary assignment to the FTC and we don’t have any “now it can be told” government news on the subject. But we can offer insights into what happening on MARS: the Mortgage Assistance Relief Services Rule. As X Files fans would say, "The truth is out there," but one place it appears to be lacking is in promotions making overhyped promises to homeowners in financial trouble.
Yesterday’s 10th anniversary of the National Do Not Call Registry was a good time to reflect on a decade of progress. But to paraphrase Thomas Jefferson (or Patrick Henry, Irish statesman John Philpot Curran, or whoever else said it), eternal vigilance is the price of an uninterrupted dinner hour. A record-setting $7.5 million settlement with a national mortgage broker demonstrates the FTC’s commitment to the fight against
Funny thing about the Fair Credit Reporting Act: It’s been around since 1970, it’s broad in scope, and yet a lot of businesses with obligations under the law may not be focusing on compliance. Warning letters the FTC just sent to six companies in a particular line of work underscore the need to double-check your FCRA responsibilities.
A favorite trick for rip-off artists is to pretend to represent a trustworthy and respected organization. Today — and we mean that literally — we’re hearing from businesses that have received email exploiting the good name of the Federal Trade Commission. We don’t want you to lose money or valuable information to a scam artist sending a phony message claiming you’re a target of the FTC.
Here’s a first for you: The FTC has released a series of ads created by its own staff and boy, are they bad. No, we’re not channeling our inner Sterling Cooper Mad Men. The goal is to help companies comply with their legal obligations by showing some of the questionable mortgage-related claims likely to cause law enforcement — and consumer — heartburn.
Never underestimate the creativity of marketers attempting to separate cash-strapped consumers from their last dollar. And never underestimate the FTC’s resolve to protect people from deception in tough economic times. Those are just two points to take from recent FTC law enforcement actions.
Imagine for a moment your ideal customer. They consider their choices carefully before buying. They keep their accounts current. When service is top-notch, they spread the word to friends and family. If there’s a glitch, they give you a chance to correct the problem before posting thumbs-down reviews. Now imagine you could “create” your own cadre of contented customers. Fantasy Land? It’s more real than you might imagine.
Last week saw FTC announcements involving allegations of foreclosure rescue fraud, deception aimed at people trying to resell their timeshares, complaints against payday lenders, and lawsuits against outfits claiming to help consumers behind on their car payments. Is there a theme here? You bet. But the message isn't just for companies engaged in practices targeting consumers struggling to stay afloat. There are words to the wise for businesses of any size and every stripe.
The FTC has filed another action against defendants who allegedly attempted to squeeze the last drop from homeowners already under water. This case, however, involves a disturbing new variation on foreclosure "rescue" operations.
In celebration of Halloween — and with apologies to Edgar Allen Poe — here’s our take on what companies can do to make sure spooky business practices don’t come back to haunt them.
Once upon a midnight lawful
Pondering practices, good and awful,
Reading through the U.S. Code
For dos and don’ts I parse and claw.
I came upon the Trade Commission’s
Section 5 with all revisions.
The FTC just announced more settlements with companies that falsely promised to help homeowners facing foreclosure. “Not relevant to our business,” you say? Think again.
“You can settle your credit card debt for pennies on the dollar without filing for bankruptcy.”
For people struggling to stay afloat, Debt Relief USA’s national TV ads must have seemed like a lifeline. When consumers called the company, representatives assured them that low monthly payments to Debt Relief USA would cover both the settlement of their reduced debts and the company’s fees. For the service to work, said the reps, people had to stop making payments to their creditors — and stop talking to them at all.
Savvy executives like to stay in the loop on FTC activities that could affect their industry. They make it a habit to scan the headlines or check for relevant workshops or reports. But there’s a third category of information a bit less understood: closing letters from BCP staff.
In the spirit of transparency, the agency posts them online. Here in the BCP Business Center, recent letters appear in the Compliance Documents section of each topic area.