NEW YORK (AP) — The Federal Trade Commission said Thursday that it mailed more than 13,000 refund checks to consumers who were tricked by a company that claimed it would negotiate with lenders to modify their mortgage terms.
The federal agency had alleged that the operators of First Universal Lending would charge consumers upfront fees and encourage homeowners to stop making mortgage payments. But First Universal would then do little or nothing to help homeowners, the FTC said.
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To resolve the charges, First Universal Lending and its owners agreed to an order banning them from the mortgage relief services business.
More than $723,000 was returned to consumers through the checks, meaning the average check was $55.62. The amount of refund checks varied based upon the amount of each consumer’s loss, the FTC said.
The FTC said the money for the refunds was recovered from First Universal, which is based in Palm Beach Gardens, Fla.
The agency said consumers who receive checks should cash them on or before October 6.
