FTC Refunds Regency Financial Auto Loan Modification Scam Victims

The Federal Trade Commission has announced it will be mailing refund checks to 288 people who paid an upfront fee to Regency Financial Services LLC in an auto loan modification scheme.

According to the FTC, Regency Financial Services failed to provide the promised services and did not honor its “money back guarantee.”

In March 2015, the FTC and 32 law enforcement partners announced they had engaged in a crackdown called Operation Ruse Control in order to protect consumers who purchase or lease automobiles. There were reportedly 187 U.S. enforcement actions since the FTC’s last sweep and 65 actions in Canada. The FTC cases reportedly included more than $2.6 million in judgments.

The FTC filed the auto loan modification scheme lawsuit against Regency Financial Services and its CEO Ivan Levy on Jan. 26, 2015, according to a press release about the results of Operation Ruse Control.

According to the FTC lawsuit, the defendants allegedly offered to negotiate an auto loan modification for consumers if they paid an upfront fee, but often failed to deliver on its promise. The upfront fee was usually $499 although the defendants would accept payment in installments, according to the FTC lawsuit.

The FTC claims Regency Financial Services also failed to provide refunds to consumers when it was unable to obtain an auto loan modification despite its “money back guarantee.”

Regency Financial Services “preys on consumers who are struggling to pay their debts, baiting them with websites that promise help,” the FTC lawsuit alleges.

“Despite its promises and substantial upfront fees, Regency, in numerous instances, does not prevent creditors from repossessing consumers’ automobiles and does not substantially reduce consumers’ loan interest rates and monthly payment,” according to the FTC lawsuit. “Instead, Regency merely provides consumers valueless referrals and advice.”

The FTC lawsuit charged Levy and Regency Financial Services with violations of the FTC Act and Telemarketing Sales Rule. The automobile loan modification scam lawsuit sought refunds for the affected consumers and an injunction against the defendants to permanently prevent them from using these deceptive tactics.

According to the FTC, it will be mailing more than $109,000 to victims of the alleged auto loan modification scheme. The amount each person receives will be determined based on information they provided to law enforcement. The average refund amount will be $380.

If you receive a Regency Financial Services refund check from the FTC, you should cash or deposit it within 60 days.

Consumers with questions about the Regency Financial Services refund check can call the refund administrator at 866-591-7249 for more information.

The FTC is represented by Jonathan E. Neuchterlein, Anna M. Burns and Marcela C. Mateo of the Federal Trade Commission.

The FTC Regency Financial Services Scam Lawsuit is Federal Trade Commission v. Regency Financial Services LLC, et al., Case No. 1:15-cv-20270-DPG, in the U.S. District Court for the Southern District of Florida.