NEW YORK, NY (June 23, 2010) - Attorney General Andrew M. Cuomo today announced that his office is sending 182 cease-and-desist letters to mortgage rescue companies with customers in New York, warning mortgage rescue companies to end any illegal, deceptive, and misleading practices, including:

• Charging up-front fees for consulting services;
• Failing to enter into written contracts with homeowners, in the language the homeowners use, that fully disclose the exact nature of, and fees for, the services to be provided;
• Failing to allow homeowners to cancel their contract, without any penalty, within five business days after signing and failing to provide homeowners with notice of this right in the contract;
• Using any deceptive and misleading advertising practices, including:
• false guarantees regarding success rates, false 100% money-back guarantees, and fabricated consumer testimonials;
• Using any advertisements designed to give consumers the false impression that a company is affiliated with the government or a government-sponsored program.

Mortgage rescue companies target homeowners facing foreclosure by claiming to be able to modify home mortgage loans and lower monthly payments. Often, these companies engage in deceptive and illegal marketing practices to lure customers and then fall short on their promises. After using a mortgage rescue company, homeowners can find themselves in worsened financial circumstances and at greater risk of losing their homes.
When faced with the threat of foreclosure, New Yorkers should remember the rights they have as homeowners and the protections that my office ensures.

Visit www.nyprotectyourhome.com to learn about how to recognize and avoid mortgage rescue scams.