Pennsylvania Banking Department Warns Consumers About Misleading Mortgage Marketing Tactics

HARRISBURG, Pa., April 19 /PRNewswire-USNewswire/ -- The Pennsylvania Department of Banking is warning consumers about a new wave of misleading marketing tactics designed to entice homeowners into refinancing their mortgages.

The department's Office of Consumer Services says some homeowners are receiving letters that appear to be from their own lender or from the federal government and make reference to their home mortgage. In some cases, these letters have been sent from a company whose name is mentioned only in fine print on the letter. The homeowner may call the telephone number on the letter thinking they are contacting their own lender or a federal agency only to learn that they are calling a company competing with their lender for business.

"These communications are brazenly misleading and intended to frighten and confuse consumers," says Secretary of Banking Steve Kaplan. "We are contacting the offending institutions as well as their marketing companies and ordering them to put an end to this practice."

The Department of Banking urges consumers to "do their homework" before entering into business with any financial company, especially companies offering loan modifications or refinancing. 

Consumers can ask about financial transactions as well as learn about companies licensed or chartered by the Department of Banking at www.banking.state.pa.us or by calling 1-800-PA-BANKS.

Media contact: Ed Novak, 717-783-4721

SOURCE Pennsylvania Department of Banking