FTC Seeks to Stop Bogus Auto Loan Modifications

The Federal Trade Commission has filed complaints and is asking a federal judge to stop alleged deceptive practices by two California-based auto-loan modification businesses that promise to rescue consumers from having their cars repossessed.
Businesses under the names of “Hope for Car Owners” and “Auto Debt Consulting” have taken hundreds of dollars in upfront fees for reducing monthly car loan payments.
Consumers were instructed to pay fees to the companies, and to stop paying their auto lenders.
These are the FTC’s first cases against companies offering auto loan modifications.
The consumer protection agency has vigorously gone after operations that prey on desperate homeowners with fraudulent mortgage loan modification pitches.
“Now that the FTC and its partners have stopped hundreds of mortgage loan modification scams, fraud artists are moving to another loan modification scam, preying on consumers who are behind on their auto loan payments and facing repossession,” said David Vladeck, director of the FTC’s Bureau of Consumer Protection.
The FTC charged that Hope for Car Owners, LLC, NAFSO VLM, Inc. and Kore Services LLC (doing business as Auto Debt Consulting), and several individual defendants deceived consumers with false promises, and then did not provide promised refunds when they failed to obtain car loan modifications.
The FTC has asked the court to order the defendants to stop the allegedly illegal operation while the FTC moves forward with the cases.

Leave a Reply

Your email address will not be published. Required fields are marked *