March 08, 2010
A “Loan Modification Scam Alert” campaign was launched by
the New York State Consumer Protection Board last Thursday as a part of its annual Consumer Action Day. The agency collaborated with NeighborWorks America, the Empire Justice Center, the state Division of Housing and Community Renewal, Department of Labor, Department of State and the state Banking Department to promote the campaign.
The campaign warns homeowners facing foreclosure about loan modification scams, provides them with accurate information and encourages them to report illegal activity to authorities.
According to the Consumer Protection Board, the national foreclosure rate is at its highest at 8.85 percent and the rate in New York is close to 7.78 percent, and many homeowners who go to foreclosure “rescue” companies to change their mortgage loan plans and are often deceived.
The press conference in the Concourse of the Empire State Plaza also kicked off National Consumer Protection Week, and representatives from participating organizations spoke about empowering homeowners with information and providing services to help them make right decisions in these tough times.