Reblogged from Consumer Affairs – James Limbach
Two companies that lied to consumers with ads for a mortgage payment program that promised tens of thousands of dollars in interest savings from more frequent mortgage payments will pay a hefty price for their scheme.
Under the terms of the orders announced by the Consumer Financial Protection Bureau (CFPB), Paymap will return $33.4 million in fees to consumers and pay a $5 million civil penalty to the CFPB, and LoanCare will pay a $100,000 civil penalty.
“Deceptive advertising has no place in the financial marketplace,” said CFPB Director Richard Cordray. “Today’s action is delivering relief for consumers deceived by Paymap and LoanCare, and sending a clear message that these practices will not be tolerated.”
Equity Accelerator Program
Paymap Inc. is a Colorado-based payment processing company, and LoanCare Servicing is a residential mortgage servicer based in Virginia. Together, they marketed and provided the “Equity Accelerator Program” — an electronic payment system that enables consumers to make automatic mortgage payments via electronic debits from their bank accounts.
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