MARS Misrepresentation Examples

The FTC rules with respect to mortgage assistance relief services includes the following examples of misrepresentations that would violate the MARS rules:

• The likelihood or negotiating, obtaining, or arranging any represented service or result (16 C.F.R. 322.3(b)(1));

• The time it will take the MARS provider to accomplish any represented service or result (16 C.F.R. 322.3(b)(2));

• That a MARS is affiliated with, endorsed or approved by, or otherwise associated with (16 C.F.R. 322.3(b)(3)):

• The United States government,

• Any governmental homeowner assistance plan.,

• Any federal, state or local government agency, unit or department,

• Any nonprofit housing counselor agency or program,

• The maker, holder, or servicer of the consumer’s dwelling loan, or

• Any other individual, entity, or program;

• The consumer’s obligation to make scheduled periodic payments or any other payments pursuant to the terms of the consumer’s dwelling loan (16 C.F.R. 322.3(b)(4));

• The terms or conditions of the consumer’s dwelling loan (16 C.F.R. 322.3(b)(5));

• The terms or conditions of an refund, cancellation, exchange, or repurchase policy for a MARS (16 C.F.R. 322.3(b)(6));

• That MARSA provider has completed the represented services or has a right to claim, demand, charge, collect, or receive payment or other consideration (16 C.F.R. 322.3(b)(7));

• That the consumer will receive legal representation (16 C.F.R. 322.3(b)(8));

• The availability, performance, cost, or characteristics of any alternative to for-profit MARS through which the consumer can obtain mortgage assistance relief (16 C.F.R. 322.3(b)(9));

• The amount of money or percentage of the debt amount that a consumer may save (16 C.F.R. 322.3(b)(10));

• The total cost to purchase the MARS (16 C.F.R. 322.3(b)(11)); or

• The terms, conditions, or limitations of any offer of mortgage assistance relief the provider obtains from the consumer’s dwelling loan holder or servicer (including the time period in which the consumer must decide to accept the offer) (16 C.F.R. 322.3(b)(12)).