Date Released: FTC-PR-240109-1

January 9, 2024


FTC-PR-240109-1 – FTC Sends More Than $1.2 Million in Refunds to Consumers Harmed by Deceptive Mortgage Loan Modification Scam


The Federal Trade Commission is sending more than $1.2 million in refunds to consumers who lost money to Consumer Defense, a deceptive mortgage modification scheme.

The FTC is sending payments to 6,261 consumers, who will receive $201.34 each. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, JND Legal Administration, at 877-595-0141 or visit the FTC website to view frequently asked questions. The Commission never requires people to pay money or provide account information to get a refund.

According to the FTC’s 2018 complaint, Consumer Defense operated under a number of names, including Preferred Law and American Home Loan Counselors, and deceived financially distressed homeowners by falsely promising to prevent foreclosure and make their mortgages more affordable. The defendants typically charged homeowners unlawful upfront fees in monthly installments of $650, falsely promising expert legal assistance. In many instances, consumers paid hundreds or thousands of dollars only to learn that the defendants had not obtained the promised loan modifications, and in some cases had never even contacted the lenders.

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[Date Accessed: 3/3/2024]

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