A California mortgage firm has agreed to a settlement with the Federal Trade Commission over allegations it didn’t make proper disclosures on pre-screened credit offers.
The settlement was announced today by the FTC with Metropolitan Home Mortgage Inc.
The Irvine, Calif.-based firm, which also does business as Wholesale Home Lenders, allegedly violated the Fair Credit Reporting Act by failing to inform recipients of pre-screened credit offers that they can opt out of receiving such offers again.
“The Fair Credit Reporting Act permits lenders or insurers to make prescreened offers if the offer clearly and conspicuously discloses that, among other things, the consumer’s credit report was used to make the offer and that the consumer can opt out of receiving such offers in the future,” the agency explained. “The FTC’s Prescreen Opt-Out Notice Rule (Prescreen Rule) requires that each written solicitation contain a short and a long notice.”
As part of the settlement, Metropolitan — which reports that it is licensed in 15 states — is prohibited from future FCRA violations. In addition, it is required to pay a $20,000 civil penalty.
United States (For the Federal Trade Commission), Plaintiff, v. Metropolitan Home Mortgage, Inc., a corporation, also doing business as Wholesale Home Lenders, Defendant.
Civil Action No. 09-05873 (JSL) (RZx), FTC File No. 0823104, Aug. 12, 2009 (U.S. District Court for the Central District of California, Southern Division)
