This story appeared in Bank Digest.
The Consumer Financial Protection Bureau, the Federal Trade Commission, and 15 states have undertaken a sweep against "foreclosure relief scammers that used deceptive marketing tactics to rip off distressed homeowners across the country." The enforcement sweep was dubbed "Operation Mis-Modification." The bureau filed three lawsuits against companies and individuals that collected more than $25 million in illegal advance fees for services that falsely promised to prevent foreclosures or renegotiate troubled mortgages. The CFPB is seeking compensation for victims, civil fines, and injunctions against the defendants. Separately, the FTC has filed six lawsuits, and the states are taking 32 actions.