The Federal Trade Commission is mailing refund checks totaling $499,701.84 to 229 consumers who paid the Lucas Law Center an advance fee for mortgage loan modifications the company falsely claimed it would obtain for them.
Lucas Law Center allegedly used an attorney to circumvent state prohibitions against receiving a fee before providing any services; the defendants charged up to $3,995 in advance. In addition to falsely representing that they would obtain mortgage loan modifications, the defendants told some homeowners to stop paying their mortgage in order to pay the defendants’ fee. Consumers obtained promised refunds only after repeated complaints to the Better Business Bureau, the California Attorney General, the State Bar of California, or local criminal authorities. The court immediately barred the practices and froze the corporate defendants’ assets, pending a hearing.
Affected consumers will receive checks ranging from $427.62 to $8,246.90; the average check is $2,182.10. Those who receive the checks from the FTC’s refund administrator should cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. Those with questions should call the refund administrator, Analytics Consulting LLC, at 1-855-332-3410, or visit www.FTC.gov/refunds for more general information. – Source