This weekend I saw my first loan modification infomercial. My first thought is are all those services scams? By that I mean, is the very notion of handing money over to a third party in hopes that they can do better than you in getting your debt paid, a losing proposition?
Meanwhile the FTC is suing a bunch of these services because their ads make them sound like they are sponsored by the federal government; Federal Loan Modification Law Center and Bailout.hud-gov.us.
The FTC is also sending out warning letters to 71 more services based on potentially deceptive ads which make the following types of claims; These advertisements contain potentially deceptive claims, touting guaranteed results, success rates of over 90 percent, and claiming affiliation with homeowners’ lenders, with the HOPE NOW Alliance, or with federal government programs.