or any other affiliated companies or individuals for mortgage assistance relief services, you may have been a victim of violations of the Consumer Financial Protection Act (“CFPA”) and Regulation O that prohibit advance fees and unfair or deceptive acts or practices by mortgage relief operations, and you may qualify for benefits from a settlement.
The CFPB investigated and sued Chance Gordon, Abraham Michael Pessar, and their companies for violating consumer-protection laws. The CFPB charged that the defendants violated the law by operating a nationwide loan modification scheme that preyed on distressed homeowners. In the lawsuit, the CFPB alleged that the defendants:
These acts violated the Consumer Financial Protection Act, the Mortgage Assistance Relief Services Rule, or both. The CFPB also alleged that defendants violated federal law by advising consumers to stop paying their mortgages without also warning the consumers that doing so could damage their credit ratings or cause them to lose their home. The CFPB also alleged that the defendants illegally instructed consumers not to communicate with their lenders.
For more information on this suit, please visit www.consumerfinance.gov/budget/civil-penalty-fund, and click on “Gordon, et al.” at the bottom. To learn more about CFPB and other CFPB related matters, please visit the CFPB’s website at www.consumerfinance.gov.