Saturday, February 26, 2011

Mortgage Assistance Relief (MARS) Protects Consumers

The Federal Trade Commission's new Mortgage Assistance Relief Services (MARS) Ruling is designed to protect consumers from unfair and deceptive practices associated with mortgage relief companies.

The MARS new ruling:

• Makes it illegal to collect upfront fees

• Requires specific disclosures in all communications and advertisements for

mortgage assistance relief services, and

• Requires specific record keeping for two years from the date of document

creation.

Penalties for Non-Compliance

According to FTC attorneys, penalties for noncompliance include:

• Civil penalties of $16,000 per occurrence

• Injunctive relief

• Disgorgement of unlawful gain

• Ban on participation

To avoid penalties that could land you in hot water with the FTC, you should become familiar with and begin applying these changes immediately!