California companies Auto Debt Consulting and Hope for Car Owners LLC have been sued by the Federal Trade Commission for running vehicle loan modification relief scams. The crooks made false promises and reneged on their 100% money back guarantee.
The FTC took action against the two car loan modification companies after an investigation showed they lured victims using false promises. They failed to honor refund guarantees after victims paid $350 to $799 only to be unable to avoid repossession.
NAFSO VLM, Inc, dba Vehicle Loan ModificationThe FTC’s action affects the following defendants:
- Kore Services, LLC, dba Auto Debt Consulting, dba Car Loans Modification
- Naythem Nafso
- Michael Kamfiroozie
- Hope for Car Owners, LLC
- Patrick Freeman
The scammers violated fair and deceptive trade regulations by claiming extraordinary results, promising specific actions and guarantees of full refunds if customers were dissatisfied. Some claims were payment reductions of 25-50%. The companies of course failed to provide refunds, instead leaving their clients worse off than they were prior to requesting help.
Customers who were already several months delinquent on their car loans paid hundreds of dollars for help in getting deferrals on payments and loan modifications that would lower their car payments. Instead, customers were left to fend for themselves after their lenders sought repossession of their vehicles due to nonpayment of their loan installments.
Consumer advocates like Debtors Unite advise borrowers to work directly with their lenders whenever they are having difficulty with loan payments. Most lenders will allow for temporary reprieves and other workarounds that will allow customers to restore a current payment status on their loans. Paying an outside company only diverts money that could have been used to pay the lenders.
Debtors Unite provides additional information about car loan modification scams as well as effective methods for getting car loan modifications. This information is for public benefit and provides the facts on getting help with car payments.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
Favorite quote:
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
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