WASHINGTON, D.C. (LoanSafe.org) — The Federal Trade Commission is distributing refund checks to borrowers lured by a firm charged with deceptively advertising that it offered 3.5 percent, fixed-payment, 30-year mortgage loans. According to the FTC’s federal court complaint filed in 2004, the firm allegedly duped consumers into signing up for adjustable rate mortgages in which the principal balance would increase if they made payments at the advertised rates.
The FTC mailed 261 checks on June 30, with each one totaling $1,238.35. The refund checks are valid for 60 days from the date they are issued. The refunds are the result of a settlement between the FTC and the defendants and the recent distribution of the defendants’ assets by the Bankruptcy court.
Consumers who were victimized by the company, Chase Financial Funding Inc., but did not complain to the agency may still qualify to receive refunds. A special phone line has been set up to handle questions. Consumers who think they may be eligible for a refund or have questions can contact the claims administrator on its hotline at 1-877-789-9498.
For more information about the case, see the court documents and news release at: http://www.ftc.gov/opa/2004/06/chasefinancial.shtm.
NOTE: The settlement in this case does not constitute an admission by the defendant of a law violation. Consent decrees have the force of law when signed by the judge.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.
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