In a March, 2011, article on Florida’s Office of Financial Regulation’s website that the Florida Office of Financial Regulation (OFR) Commissioner Tom Cardwell announced the 100th Cease & Desist Order was served in Florida to companies conducting unlawful loan modification services. 

  

Commissioner Tom Cardwell cautions citizens against paying any upfront fees for loan modifications, which are illegal. “If the person asks for any money upfront, simply turn and walk away,” Cardwell advised. “Consumers are desperate for help, but they should know their rights under the law before they act so they can protect themselves from becoming victims of financial fraud during these difficult economic times. Many of our citizens find themselves in difficult financial situations, which make them easy prey for these corrupt individuals who charge for services they do not complete and make promises they have no intention of keeping. Our goal is to ensure Floridians only pay for loan modification services that are a true benefit, not an unrealistic promise, to solve their financial problems.”

 

Companies providing loan modification services such as adjusting interest rates or any other services must have an active license from OFR. Any person or entity that continues to engage in loan modifications in this state without an active license is guilty of a third-degree felony punishable by a prison term of up to five years and a fine not to exceed $5,000 per offence.

 

The Florida Office of Financial Regulation offers the following tips for consumers to identify potential fraud and avoid becoming a victim:

 

• Do your research! Check the regulatory requirements the profession adheres to and confirm the person you are working with has a professional license. Also check if any complaints have been filed against the company or individual. 

• Always get your agreement in writing and specify the services to be provided.

• NEVER pay any upfront fees for loan modification services. It is illegal to charge consumers for any services until after they have been rendered.

• Immediately get help if you feel you have been victimized.