No fooling: mortgage ads must tell the truth

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If you’ve ever shopped for a mortgage, you know it takes time to sort through competing ads. If an online ad claimed you could “save up to $2,000 a year,” lower your mortgage payment with “no credit check,” or refinance your mortgage for free with “no hidden fees,” you might think it looked pretty good and submit your personal information.

Just because an offer looks good doesn’t make it so. In fact, the FTC just reached a settlement with a company that allegedly ran ads with attractive — but deceptive — pitches for low-rate mortgages. According to the FTC, Intermundo Media, LLC, doing business as Delta Prime Refinance, hyped low rates that weren’t available, free refinancing that didn’t exist, and fixed rates that were actually variable. They used online ads and email to attract people and get their personal information, then sold it to companies that often didn’t provide the advertised mortgages. Under the settlement, Intermundo is banned from misrepresenting the terms of financial services or products and will pay a $500,000 civil penalty.

It’s important to shop around to find your best financing deal on a mortgage. Learn the buzz words that should prompt you to ask follow-up questions, and the information to insist on after you’ve read an ad.

 

* This post was edited on September 12, 2014, to clarify that the FTC alleges the conduct described.

Tagged with: advertising, home, loan, mortgage
Blog Topics: 
Homes & Mortgages

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Global life insurance company is doing the same thing. Falsely claiming polices for 1.oo until they get your personal information then decline the no medical necessary offer.

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