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Home lender lied about loan specifics in addition to calling 5.4 million people on the national DNC registry

The Federal Trade Commission announced this week that it has won a massive civil penalty against Mortgage Investors Corporation for violating Do Not Call List statutes. The FTC says it won a $7.5 million civil penalty against the mortgage company for calling up 5.4 million numbers that are on the national Do Not Call Registry.

Mortgage Investors Corporation is said to be one of the largest financers of veteran's home loans. The FTC alleges that the mortgage company not only called consumers who were on the national Do Not Call Registry, but that it failed remove consumers from its call list when they asked and misstated terms of available loans during their telemarketing calls.

The people targeted were current and former U.S. military personnel, and the actions constitute a violation of the Telemarketing Sales Rule. The FTC says that the telemarketers misled consumers into believing that low interest, fixed-rate mortgages were available at no cost and often quoted rates to consumers that they implied by that would last the duration of their loan.

The FTC says that in reality the product the company was offering was an adjustable-rate mortgage where the payments would increase with rising interest rates and would require the consumer to pay closing costs. Mortgage Investors Corporation also allegedly misled consumers about its affiliation with the Department of Veterans Affairs.
 
The announcement of the $7.5 million fine came on the 10-year anniversary of the national Do Not Call Registry.

Source: Network World



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"Massive"
By 7Enigma on 6/28/2013 8:39:20 AM , Rating: 5
Maybe to you and me but to MIC? I think they laughed at this. Until companies start getting penalized with a REAL punishment (my recommendation is a flat percentage of profit/earnings), it is financially beneficial to break the law and pay a piddling settlement (probably don't even have to admit guilt).

Flat % makes a great deal of sense. You are Apple/Microsoft/Google, guess what you're paying in the billions. Small mom & pop, in the thousands. Both companies get hurt the same amount and should prevent anyone from being "too big" to care.




RE: "Massive"
By FaaR on 6/28/2013 8:58:42 AM , Rating: 2
Please dude, for your own sake if nothing else, stop making sense before you get arrested!

(Or at least mobbed by the corporate plutocracy apologists that always swarm blog comment columns like these.)


RE: "Massive"
By Snoop on 6/28/2013 9:33:59 AM , Rating: 3
The feds should be handing out these things weekly. I average 2 calls a day from solicitors. It doesn't seem like it would be very difficult to find the companies and put them out of business. The NSA can f&(*& intercept calls and emails, it seems like they could put this system to good use and find the scammers. Apparently they have other things to do though....


RE: "Massive"
By gman64 on 6/28/2013 1:56:42 PM , Rating: 2
Why are British lawyers calling you twice a day? Is your real name Todd Margaret?


RE: "Massive"
By Mint on 6/28/2013 10:05:57 PM , Rating: 2
That could be crossing a line we don't want to.

DT had an article about the public largely supporting spying in the name of national security, but would they want them doing the same for anything not related to terrorism?

A lot of telemarketers work through distributed work at home networks. Finding scammers is going to require some really rigorous spying of household-to-household calls.


RE: "Massive"
By corduroygt on 6/28/13, Rating: -1
RE: "Massive"
By 1prophet on 6/28/2013 11:38:28 AM , Rating: 3
Speeding tickets already have a great equalizer, it's called the point system, too many points and you can have your privilege to drive suspended no matter your wealth status.


RE: "Massive"
By BRB29 on 6/28/2013 11:55:28 AM , Rating: 1
except the poor guy can't get a chauffeur and the rich guy can.


RE: "Massive"
By maverick85wd on 6/28/2013 12:26:39 PM , Rating: 3
except the rich guy pays a lawyer and gets the points removed.


RE: "Massive"
By guffwd13 on 6/28/2013 3:46:25 PM , Rating: 2
I had a speeding ticket in the state of Colorado. I live in PA. I couldn't attend any courts or take any classes to remove the points. So I was like, thanks stupid hole-in-the-wall cop who sets speed traps specifically to catch people off guard when crossing from Kansas to CO.

Then they told me I could pay an extra $150 on top of the fine and the ticket goes away like it never happened. I was like, seriously?? That's all I have to do? That's so very wrong! But,....um yeah.... done!


RE: "Massive"
By tayb on 6/28/2013 12:12:23 PM , Rating: 3
Fines? No, jail time. If you violate the law you go to jail. If you are the CEO of a company and your company violates the law, you to to jail. Start throwing these people behind bars and they'll stop violating the law. Fining them is pointless no matter the amount. Just look at Microsoft... they didn't learn after a $1 billion fine.

It's the same thing with the banking industry. Fining a bank is a laugh. The executives couldn't give a shit, they'll just increase a fee and recoup the fine in a month. But if they're facing prison? Watch how fast the industry changes.


RE: "Massive"
By Irene Ringworm on 7/1/2013 12:47:13 PM , Rating: 2
Sarbanes-Oxley already holds executives personally accountable for a company's financial activities, with criminal penalties up to 30 years in prison.


RE: "Massive"
By LBID on 6/28/2013 6:15:27 PM , Rating: 2
Someone should six this. For great truth and justice!


RE: "Massive"
By Reclaimer77 on 6/30/2013 4:36:09 PM , Rating: 2
Makes sense. Let's fine companies quadcatrillions of dollars for making phone calls...

Sometimes the raw hate for all businesses on Daily Tech is just too much.

Also where does this money of yours go? Certainly not to the "harmed" party, but right to our Government. Where I'm so sure it's better spent than in the private sector right? HA!

So you're down with fleecing the private sector even more, but hey why not? They make lots of money, so they deserve it, they're evil I'm sure...


RE: "Massive"
By Strunf on 7/1/2013 8:00:10 AM , Rating: 2
What you miss is "making phone calls" to people that explicitly said they didn't want to be called.

Besides soliciting by phone or otherwise is 9/10 times more a waste of time and potential money to someone than really a service. I'm all for expanding the "Do not call" list to every soliciting means, hell I could bet that 90% of the people would be more than happy to be on that list.


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