Daily News and Information for the Mortgage Loan Originator
8 Phone Calls Lead to Do-Not-Call Lawsuit
Monday, July 17, 2006
- By Staff Writer, Originator Times
STUART, FL - A mere 8 phone calls got Global Mortgage Funding Inc. in heap of trouble. A lawsuit against Global Mortgage Funding Inc. is seeking an injunction prohibiting the company from making any future calls to Florida residents on the Do Not Call list and fines of up to $10,000 for each of the calls it made to prohibited phone numbers.
The lawsuit alleges that Global Mortgage Funding Inc., based in California, made at least 8 calls to Florida residents on the state’s “Do Not Call” list during the past 18 months. In addition, the suit claims that at least 8 of the company’s telemarketing calls contained recorded messages, which is a separate violation of state law.
Florida Agriculture and Consumer Services Commissioner Charles H. Bronson filed the lawsuit in Leon County Circuit Court. Bronson’s office released a statement saying, “Consumers who join the (DNC) program are entitled to be spared the intrusion of commercial telemarketing calls, and we’re committed to seeing that their privacy is protected,” Bronson said. “We have little tolerance for companies who flout the law.”
Bronson’s department has collected or obtained judgments of more than $1.5 million against companies that have called residents on the list, and several such legal actions are pending in courts throughout the state.
Florida is not the only state taking aggressive action when it comes to the DNC laws. Missouri Attorney General Jay Nixon recently sued First United Mortgage Corp., based in Florida, for making calls to Missourians on the Do Not Call list. To date, Nixon's office has obtained more than $1.3 million from business that have violated Missouri's No Call law, which took effect in 2001.
Last month, The Federal Trade Commission imposed a $1,138,551 judgment against Executive Financial Home Loan Corp and company officers Michael Nikravesh and Ron Fattal for violating two key DNC provisions of the Telemarketing Sales Rule.
Related
Articles :
If Your Company Doesn’t Have a Do Not Call Policy, is it Time to Quit? Before you pick up the phone to call a realtor referral or past client referral, understand this - it may personally cost you $11,000. Readers who responded to our earlier article-What you don’t know Can Bankrupt your Company overwhelming asked the same questions, “Can I be personally fined?” and “What should I do if my company doesn’t take the DNC laws seriously?”
Do Not Call Compliance Impacts the Mortgage Industry The Do Not Call laws essentially change the way mortgage companies must conduct business. Mortgage companies must take 8 definitive steps to fully protect themselves from federal and state fines.
Company Gets $1 Million Judgment For Using Pre-Scrubbed Leads Executive Financial Home Loan Corp and company officers Michael Nikravesh and Ron Fattal were issued a judgment for $1,138,551 for violating the Federal Do Not Call Laws. Executive Financial claimed the leads they bought were pre-scrubbed, but the government contends buying pre-scrubbed leads is still a violation.
What You Don’t Know Can Bankrupt Your Company If you’re one of those mortgage originators who thinks the Do Not Call (DNC) laws don’t apply to you because you’re not making cold calls or you’re only buying “scrubbed” leads, the FCC says you’d better listen up. Yes, the laws were originally enacted to curb those annoying dinnertime calls from your typical telemarketer; but the reality is these laws apply to all U.S. companies that make sales transactions over the telephone – including mortgage companies.
Calling Leads Lands Mortgage Company in Hot Water The Federal Trade Commission and the US Department of Justice has settled another case involving Do Not Call violations by a mortgage company. The settlement includes a $426,782 civil penalty against USA Home Loans Inc. and its owner, David Vach.
