BULLETIN: Now, A Web-Based ‘Auto Loan Modification’ Scam, FTC Alleges; California Firms Accused Of Targeting Car Borrowers Facing Repossession And Putting Them Deeper In The Hole

Examples of promotional slogans used on the Hope for Car Owners website: Source: FTC

BULLETIN: The Federal Trade Commission has gone to federal court in the Eastern District of California, alleging that several individuals and companies were running separate, web-based scams in which borrowers were told they could avoid vehicle repossessions by paying upfront fees to the accused scammers and not making payments on their car loans.

The scams were tied to telemarketing operations in which prospects seeking to avoid repossessions were solicited for up-front fees. One set of scammers told consumers to “hide [their] car[s] to avoid repossession,” the FTC charged.

A top FTC official described the alleged repossession-avoidance scam as the automotive equivalent of foreclosure-rescue scams targeted at distressed homeowners.

“Now that the FTC and its partners have stopped hundreds of mortgage loan modification scams, fraud artists are moving to another loan modification scam, preying on consumers who are behind on their auto loan payments and facing repossession,” said David Vladeck, director of the FTC’s Bureau of Consumer Protection. “Despite promising to substantially lower consumers’ monthly payments, these schemes charge hundreds of dollars in up-front fees, leaving financially distressed consumers in worse shape than when they began.”

Charged in one of the alleged capers were Michael Kamfiroozie; Naythem Nafso; Kore Services LLC of San Diego (doing business as Auto Debt Consulting and Car Loans Modification); and NAFSO VLM Inc. of Roseville (doing business as Vehicle Loan Mod).

Charged in an alleged separate scam were Patrick Freeman and Hope for Car Owners LLC of Folsom and Roseville.

Freeman, the FTC charged, operated carloanmod.com, hopeforcarowners.com hope4carowners.com and hope4carowners.org.

Among other things, the FTC charged, the purported Freeman programs were positioned as “Consumer Stimulus & Bailout ASSISTANCE!”

Consumers were instructed to “Stop overpaying for a depreciating LIABILITY!” the FTC charged.

The alleged scam involving Kamfiroozie, Nafso and the Kore-related entities used websites such as carloansmodification.com, autodebtconsulting.com, vehicleloanmod.com, nafsovlm.com, theautomodgroup.com and automobileadvocates.com, the FTC said.

From the autodebtconsulting website: Source: FTC

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One Response to “BULLETIN: Now, A Web-Based ‘Auto Loan Modification’ Scam, FTC Alleges; California Firms Accused Of Targeting Car Borrowers Facing Repossession And Putting Them Deeper In The Hole”

  1. Not very good chances to find legitimate loan modification or debt settlement company. You are always better off by negotiating directly or through none-profit with you mortgage company. Regrettably this message is not getting through. Too many scammers are advertising on TV.

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