WASHINGTON, D.C. — A federal court in California has temporarily shut down a mortgage assistance operation accused of collecting illegal upfront fees from financially distressed homeowners while falsely promising lower mortgage payments and interest rates through purported CARES Act relief programs.
The temporary restraining order, obtained at the request of the Federal Trade Commission, targets National Amendment Assistance, also known as N.A.A., and a network of affiliated companies and executives accused of operating the scheme since at least 2022.
According to the FTC’s complaint, the defendants mailed solicitations to homeowners nationwide claiming consumers qualified for mortgage relief through a “CARES-Act Homeowner Assistance Fund” or lender-sponsored modification program. The mailers allegedly promised specific reductions in mortgage rates and monthly payments and directed recipients to contact the companies for assistance.
Federal regulators contend those representations were false.
The complaint alleges the defendants collected unlawful upfront fees while failing to secure promised mortgage modifications. Instead, consumers allegedly lost money, fell behind on mortgage obligations, and in some cases faced foreclosure or loan default.
“When Americans look for ways to cut costs and lower their monthly bills, they shouldn’t have to worry about being targeted by mortgage scammers,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said.
The agency further alleges the defendants falsely advised consumers that they could stop making mortgage payments during a supposed grace period and misrepresented an affiliation with federal homeowner assistance programs.
The FTC claims the operation violated the Federal Trade Commission Act, the Mortgage Assistance Relief Services Rule, and the Gramm-Leach-Bliley Act by making deceptive mortgage modification claims, collecting prohibited advance fees, and improperly obtaining consumers’ financial information.
The defendants include Accounting Business Consultants Inc. of California and Nevada, Accounting Servicing Providers Inc., Amster Beene Partners Inc., Assertive Loan Advisors Inc., Independent Accounting Consulting Inc., United Administration Counseling Inc., United Bookkeeping Services Inc., and company officers Marinus Pieter Van Zweeden, Martin Howard Rub, and Susan Jane Bustamante.
The lawsuit seeks consumer redress and additional relief. The case is pending in the U.S. District Court for the Central District of California.
The FTC authorized the action by a 2-0 vote. The agency noted that the allegations remain unproven and will be decided by the court.
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