Federal Debt Commission
Possible Mortgage Modification Scam
December 06, 2012
The Washington State Department of Financial Institutions (DFI) has received a complaint from consumers stating that they had been contacted by Federal Debt Commission (FDC) regarding the possibility of obtaining a lower mortgage payment under a financial hardship program.
A Mike Johnson with Federal Debt Commission called the consumers and stated they qualified for a new monthly payment and told the consumers to send their next house payment directly to Federal Debt Commission. A few days later, a William Smith with Federal Debt Commission contacted the consumers again to tell them to send their house payment directly to Federal Debt Commission. The consumers also received correspondence from a Don Nichols who identified himself as a certified consultant with Federal Debt Commission. The consumers did not comply with Federal Debt Commission’s requests and told them they had already sent their payment to their current mortgage company.
Federal Debt Commission listed its phone number as 1-877-767-1GOV or 1-877-767-1468 (no longer in service for the (360) area code), its website as ww.federalenrollmentcenter.org, and its address as 102 N.E. 2nd Street, #105, Boca Raton, FL, 33432.
Federal Debt Commission is not licensed by the Washington State Department of Financial Institutions, and is not registered to conduct business in the state of Washington by the Department of Licensing, the Department of Revenue, or the Secretary of State. DFI has been unable to locate or contact Federal Debt Commission or its alleged employees Mike Johnson, William Smith, or Don Nichols.
DFI strongly recommends that consumers deal only with those lenders that are properly licensed to conduct business. Consumers can determine whether lenders are properly licensed using the “Verify a License” feature on DFI's website at www.dfi.wa.gov.
If you are suspicious of unlicensed activity by a mortgage broker or loan originator please contact DFI at 1-877-RING-DFI (746-4334), or online at www.dfi.wa.gov.
If you feel you have been the victim of a loan scam, contact the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357), or online at www.ftc.gov.
If you feel you have been the victim of a loan scam involving the Internet, contact the Internet Crime Complaint Center at www.ic3.gov.
If you feel you have been the victim of a loan scam and are concerned about your personal financial information, contact your banking institution, and the three major credit bureaus.