CD Capital Investment, LLC

Agency: Federal Trade Commission (FTC)Washington
Description:

On July 9th 2014 the Federal Trade Commission ("FTC") filed a Complaint against CD Capital Investments LLC ("CD Capital") dba UW Solutions and Christian Quezada ("Quezada") for allegations they violated the FTC Act and the Mortgage Assistance Relief Services (MARS) Rule now known as Regulation O. The Rule bans mortgage foreclosure rescue and loan modification services from collecting fees until homeowners have a written offer from their lender or servicer that they deem acceptable. The FTC has alleged that from mid-2011 CD Capital and Quezada made promises to consumers they would receive mortgage relief services within two to four months and often claimed affiliation with the Making Home Affordable Program or with the consumer's lender. Consumers were promised they would receive a lower fixed-interest rate a reduction in their mortgage payment or a reduction in the principal balance of their mortgages. The FTC further charges a number of consumers were told that lenders or servicers would not foreclose on their homes if they were in the process of obtaining a loan modification and urged some consumers not to pay their monthly mortgage payments or communicate with their lender or servicer. CD Capital collected over $1 million in revenues by charging up-front fees of $495 supposedly to process the consumer's application and charging monthly fees that averaged about $399 for post application monitoring. According to the FTC investigation consumers found that instead of getting mortgage relief CD Capital did not submit a loan modification application on their behalf or the application was denied. Many consumers found themselves seriously delinquent and facing foreclosure.

The FTC seeks an Order prohibiting CD Capital and Quezada from committing future violations of the FTC Act and Regulation O and freezing the assets of CD Capital pending the outcome of the litigation.

On August 22, 2016 the Federal Trade Commission (FTC) filed a Permanent Injunction and Order for Equitable Monetary Belief against this company to settle charges that it operated a mortgage and debt relief scam. The company is banned from the mortgage loan modification and debt relief business. Under the final orders, the defendants are banned from selling secured or unsecured debt relief products or services, and prohibited from making material misrepresentations about any financial or other products or services. The orders impose a judgment of more than $1.7 million, which represents the amount of money consumers lost.

The complaint filed in July 2014 allege the business falsely claimed they could lower consumers’ mortgage payments and interest rates, or prevent foreclosure, pretended to be affiliated with a government agency or consumers’ lenders or servicers, and illegally charged advance fees.  

Details of the order and initial complaint can be found here.