FTC: Crowder Law Group Mortgage Relief Scam Checks in the Mail

Last week, the Federal Trade Commission announced that it is mailing checks to consumers who paid large upfront fees to Crowder Law Group and/or Jackson Crowder & Associates, but didn’t receive the mortgage modifications they were promised.

According to the FTC, Crowder Law Group and Jackson Crowder & Associates falsely promised consumers they would modify mortgages and reduce their monthly payments. They also allegedly falsely represented themselves as being affiliated with a government agency and exaggerated the role a lawyer would play in the mortgage modification.

The FTC hit nine defendants associated with the Crowder Law Group with a complaint in 2009 following a law enforcement action aimed at combating mortgage-related scams. The nine defendants were charged with violating the Federal Trade Commission Act and the Telemarketing Sales Rule.

According to the FTC lawsuit, the mortgage relief scam involved a direct mail campaign targeted toward homeowners across the United States whose mortgage payments were two or more months in arrears. The oversized postcards offered financial relief to the homeowners, and displayed a toll-free phone number and the signature of a local attorney. When the homeowners called the toll-free number, a customer service representative would collect financial documents and an upfront payment from the homeowner.

In 2012, the FTC won a $2.6 million judgment against three defendants that allegedly charged $2,000 upfront fees and failed to deliver mortgage modifications they promised to consumers. The court also approved settlements with the Crowder Law Group and other defendants named in the FTC lawsuit. The court found that the defendants, through the representations on the post cards, assured homeowners that they had qualified for loan modifications, even though they actually were still required to go through the loan modification process with lenders. In most situations, the loan modifications were not granted.

The court also prohibited the defendants from telemarketing financial services; selling foreclosure relief, mortgage modification or other debt relief products and services; and from attempting to collect from consumers who agreed to purchase a mortgage-assistance product or service.

On June 5, the FTC posted an announcement indicating the agency would be mailing 2,653 checks worth a total of more than $467,000 to consumers who lost money in the mortgage relief scam. The amount of the check varies depending on each consumer’s individual losses.

NOTE: Checks must be deposited or cashed within 60 days of the mailing date. If you receive a Crowder Law Group refund check in the mail, you must cash or deposit it by Aug. 4, 2015.

If you have questions about the Crowder Law Group refunds, you may contact the Refund Administrator at 1-888-561-9023.

The FTC stresses that it does not require consumers to pay upfront fees. Further, the agency does not ask for personal information such as your bank account information or Social Security number. If you have any questions about the validity of the check you received, visit https://www.ftc.gov/faq/consumer-protection/ftc-refund-check-legit for more information.