$1,495 for ‘loan mod’ but no service provided

A U.S. district court has shut down operations that allegedly charged consumers a $1,495 up-front fee based on phony promises that they would get mortgage relief assistance.

In addition, the firms jeopardized their clients’ privacy by tossing their personal information into unsecured dumpsters, according to the Federal Trade Commission.

The settlements with Residential Relief Foundation, LLC; Silver Lining Services, LLC; Mitigation America, LLC; and their principal owners are part of the FTC’s crackdown on scams that target consumers in financial distress.

The settlements ban the defendants from working in the mortgage assistance and debt relief business and impose judgments totaling more than $11 million – the amount of consumer harm they caused.

According to the FTC, the defendants advised consumers to stop making mortgage payments, and falsely claimed that reports they created would enable homeowners get the promised results.