FTC Obtains Preliminary Injunction Against Mortgage Relief Operation
On May 8, the Federal Trade Commission announced that the U.S. District Court for the Central District of California granted its request to preliminarily enjoin affiliated California-based debt relief companies from continuing operations, and to freeze their assets. In its complaint , the FTC alleged that the companies violated Section 5 of the Federal Trade Commission Act, 15 U.S.C. 45 , by deceiving consumers and falsely promising they could help consumers avoid foreclosure and lower mortgage payments.