A Miami company that made false promises about its ability to save homeowners from foreclosure was shut down this week by the Federal Trade Commission. Consumers who paid the company between $1,500 and $3,000 apiece, will receive $1.8 million in compensation under a settlement announced last week.
Homeowners were charged between $1,500 and $3,000 apiece. Truman claimed, falsely, that it helped 90% of it clients to avoid foreclosure, and offered a full money-back guarantee to unsatisfied customers.
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“We get your bank to listen to your needs because they know and trust us,” the company, Truman Foreclosure Assistance LLC, claimed on its website, according to the FTC’s lawsuit.
Actually, most lenders never heard of Truman, because in most cases the company never bothered to contact them, the FTC alleged. When victims called to get updates on the process, Truman often failed to respond. When jilted customers demanded their money back, Truman refused to pay.
On its website, Truman also used the logos of various federal agencies and home assistance programs to imply the company worked in partnership with government programs, when in fact no such alliance existed.
Under the terms of the settlement, the owners of Truman will be forced to repay $1.8 million to their victims. The owners are also banned from offering similar foreclosure relief products in the future.
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Image: Bill Ward, via Flickr.com