Daily News and Information for the Mortgage Loan Originator
Calling Leads Lands Mortgage Company in Hot Water
Monday, November 06, 2006
- By Staff Writer, Originator Times
TOWSON, MD – The Federal Trade Commission (FTC) and the US Department of Justice has settled another case involving Do Not Call (DNC) violations by a mortgage company.The settlement includes a $426,782 civil penalty against Maryland based USA Home Loans Inc. and its owner, David Vach.Additionally, the company and its owner have been permanently prohibited from further violations.
According to the complaint filed by the FTC, USA Home Loans Inc. violated the DNC laws by attempting to “induce the purchase of goods or services by the use of one or more telephones.” The complaint is unclear if these calls were to consumers responding to advertisements, referrals, or leads the company purchased. Additionally, “[USA] Home Loans also caused telemarketers such as First Investment Group to call consumers to induce the purchase of home mortgage goods or services” from leads First Investment purchased from third parties.
USA Home Loans also failed to register and pay the appropriate fees to access the DNC Registry making all calls to consumers a violation, even if the consumer was not on the federal DNC list.
When contacted by the Originator Times, the spokesperson for USA Home Loans, Aaron Adams, declined to comment.
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