WASHINGTON, D.C. — The Federal Trade Commission (FTC) has begun distributing refunds to consumers who were defrauded by a fraudulent mortgage relief scheme operating under the names HOPE Services and HouseHoldRelief. These organizations targeted financially vulnerable homeowners, promising loan modifications while diverting mortgage payments for personal gain.
According to the FTC, the defendants exploited struggling homeowners—particularly those at risk of foreclosure and unable to secure assistance from their lenders. Posing as a government-linked nonprofit, the operation claimed a high success rate and alleged special connections to expedite mortgage modifications. Despite these assurances, no modifications were made, and instead, homeowners’ payments were misappropriated.
The agency’s legal action began in 2015, when the FTC charged the defendants with deceptive practices, including falsely representing their success rate and their ability to deliver results for consumers who had exhausted legitimate options. The scheme devastated consumers, leaving them not only without relief but also further entrenched in financial hardship, as lenders never received the payments intended for loan modifications.
The FTC is returning over $49,000 to affected consumers. Each of the 198 identified victims will receive $251.36. The Commission advises recipients to cash their checks within 90 days of receipt, as indicated on the checks.
This enforcement effort aims to hold accountable those who prey on financially vulnerable consumers, promising assistance with overwhelming debt but instead victimizing them further. It also serves as a reminder for individuals to be cautious when seeking financial relief services and to thoroughly research any company or individual offering such services.
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