FTC mails checks to borrowers misled by deceptive Chase mortgage ads

Tuesday, July 6, 2010 - 10:06

The Federal Trade Commission (FTC) is distributing refund checks to borrowers lured by Chase Financial Funding Inc. who is charged with deceptively advertising that it offered 3.5 percent, fixed-payment, 30-year mortgage loans. According to the FTC’s federal court complaint filed in 2004, the firm allegedly duped consumers into signing up for adjustable-rate mortgages (ARMs) in which the principal balance would increase if they made payments at the advertised rates.
The FTC mailed 261 checks on June 30, with each one totaling $1,238.35. The refund checks are valid for 60 days from the date they are issued. The refunds are the result of a settlement between the FTC and the defendants and the recent distribution of the defendants’ assets by the Bankruptcy Court.
Consumers who were victimized by the company, Chase Financial Funding Inc., but did not complain to the agency may still qualify to receive refunds. A special phone line has been set up to handle questions.
For more information about the case, click here.
For more information, visit www.ftc.gov.