Monday, February 8, 2010

FTC Proposes Limits on For-Profit Loan Rescue Companies

Following the lead of states like Minnesota… the Federal Trade Commission (FTC) is proposing a new rule that would prohibit for-profit loan modification companies from charging an upfront fee for services. Companies would also have to disclose to consumers that they are for-profit, total fees they will charge, clearly state that they’re not associated with the government or the lender, and the fact that there’s no guarantee that the lender will agree to a loan modification.  Many of these proposals are already in effect in Minnesota.

There is a Federal Register published and the public comment period closes on March 29.  You can view the Federal Register, here

For more details, visit

The Center has repeatedly warned homeowners about exercising caution when working with ANYONE in a foreclosure situation.  We've even created a fact sheet (available here) to help homeowners. 

To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about preventing foreclosure in Minnesota, click here.

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