The Fair Trade Commission, the government’s consumer protection arm, basically functions to make sure consumer protection laws are enforced – and we the people aren’t scammed by savvy corporations trying to get around the rules.

Here are the latest ways we’re being protected:

Mortgage Company Agrees to Fine for Violating Opt-Out Notice Rule

Metropolitan Home Mortgage, Inc., also known as Wholesale Home Lenders, reportedly violated the Opt-Out Notice Rule, which requires that:

• Unsolicited mail loan offers must include two opt-out notices, one short and one long. These are required so that people know they have the opportunity to stop receiving offers.
• The offers must disclose that information from consumers’ credit reports was used to determine whether they qualified for the loan offers.

The company will pay a $20,000 civil penalty and has agreed to comply with rules in the future.

The FTC will monitor the company to verify compliance.

Victory for Homeowners: This can be seen as part of the government’s efforts to crack down on the deceptive and even predatory practices that many have been deemed a partial cause of the housing market’s bubble and subsequent downturn.

Job-Placement Scam Slammed

The FTC has also taken steps this week to halt a job scam that targeted job seekers across the country by placing ads in local newspapers. The defendants in the case are Career Hotline, Inc. and its head, Susan Bright.

How the scam worked:

• The scammers placed ads in newspapers across the country that provided an 800 number for interested parties to call.
• Once they dialed, applicants were asked about their work history.
• During the conversation, callers were asked to pay a “placement fee” ranging from $89 to $195.
• Callers were promised a job with an annual salary of at least $25,000 if they complied with the terms of the phone call.

Victory for Jobseekers: Thanks to the FTC, the lucrative and devious world of scamming the unemployed out of their money has just become a bit less profitable.

Get the facts on bankruptcy so you can avoid predatory practices.