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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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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.


"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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