A recent lawsuit alleges that a company called the National Mortgage Help Center is s scam. The lawsuit was filed by a company that says it actually assists borrowers around the country with loan modification services, but that they were suffering from unfair competition from the “fictitious” services of the NMHC.
This type of lawsuit is a rather unusual way to learn of misconduct or possible fraud in the financial services sector, but it is concerning nonetheless for Florida homeowners who are seeking help with a loan modification. According to the suit, the company took large fees and provided little or no assistance and make “blatantly false” claims in advertisements, promising results that it would not deliver. The suit mentions five specific people who were victims of the alleged scam who paid at least $1,500 to get help modifying their home loans.
As we have discussed in many past posts, borrowers who are having trouble making their payments should consult with trusted professionals and should avoid these types of pseudo-legal or pseudo financial companies. Even those with advertisements on TV and in the newspaper can be unscrupulous, perhaps not committing a fraud but certainly taking money from clients without offering any real solutions.
Getting out of debt can be done in a finite number of ways and those who have been through the process know that there is no silver bullet that solves debt problems. Alternatively, it is very possible to get out of debt by making the right decisions and seeking expert help in restructuring debt or facing off against aggressive financial institutions and debt collectors.
Source: Courthouse News Service, “Nationwide Loan Modification Scam Alleged,” Angela Watkins, April 17, 2013.
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