Group Banned From Debt Relief Industry In Settlement With FTC

Phillip Danielson and his company, Danielson Law Group, along with other Utah based affiliated groups, charged fees and lured vulnerable consumers by promising legal help to avoid foreclosure or to obtain favorable loan modifications.

The FTC brought charges against these groups for collecting fees and offering to provide foreclosure rescue and loan modification services before homeowners had a written offer from their lender or servicer, deemed acceptable to the homeowners. These actions violate the FTC Act and the Mortgage Assistance Relief Services (MARS) Rule, now known as Regulation O.

Today, the FTC reported that the groups have settled. The proposed orders, settling the FTC charges, ban the groups from offering mortgage relief services and from participating in the debt relief industry.

At the FTC’s request, a U.S. district court temporarily halted the operation and froze corporate and personal assets. The FTC imposed a $28.6 million judgment, based on the amount of fees collected in the scam. The judgment will be suspended pending the surrender of certain assets, including a $200,000 house in Utah.

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