FTC cracks down on mortgage relief scams

The Federal Trade Commission today banned two companies and three individuals from the mortgage relief services business and ordered them to relinquish $2.2 million in consumer refunds.

The action is part of the FTC’s ongoing effort to stop scams that target financially strapped homeowners seeking mortgage relief.

Named in the action were Kirkland Young LLC and its manager, David Botton; April Botton Krawiecki, Samy Botton, and Attorney Aid LLC.

The FTC recently issued the Mortgage Assistance Relief Services Rule, which bans providers of mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable.