Works, Inc, a corporation, and Derek R. Oberholtzer, individually and as an officer of Apply2Save, Inc., and Sleeping Giant Media Works, Inc., Defendants
(United States District Court for the District of Idaho)FTC File No. 092 3117
The FTC alleged that Internet company Apply2Save charged consumers up-front fees of up to $995, claiming they could obtain a loan modification in 30 to 90 days. In fact, they did not obtain loan modifications for most consumers and were unable to stop foreclosures.
In most cases, the defendants failed to contact or follow-up with consumers’ lenders. Consumers waited months with no action on their loans, while the defendants lied and told them that the lenders had lost their papers. The defendants have agreed to a court order barring further unlawful practices, pending trial.
The FTC asks people to report foreclosure rescue and mortgage modification scams to FTC.gov or by calling 1-877-FTC-HELP. The FTC makes those complaints available to federal, state, and local law enforcement through the Consumer Sentinel Network. The video also reminds homeowners in distress that free help is available from the Homeowner’s HOPE Hotline 888-995-HOPE (4673), which connects homeowners to HUD-certified housing counselors.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. A complaints is not a finding or ruling that the defendants have actually violated the law. Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendant of a law violation. Stipulated orders have the force of law when signed by the judge.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.
MEDIA CONTACT:
Frank Dorman
Office of Public Affairs
202-326-2674
STAFF CONTACT:
J. Reilly Dolan
Bureau of Consumer Protection
202-326-3292
(Operation Loan Lies)
(FTC File Nos. 0923120, 0923127, 0923073, 0923117)
July 15, 2009
- Complaint for Permanent Injunction and Other Equitable Relief
- News Release
More research by Moe:
From the Idaho Attorney General:
Apply 2 Save Consumer Protection Lawsuit
Apply 2 Save filed a Chapter 7 bankruptcy petition in the District of Idaho’s Bankruptcy Court on June 9, 2009. The petition includes $1.5 million in secured claims, $2.3 million in unsecured “priority” claims, and $3.9 million in unsecured “nonpriority” claims, which include hundreds of consumer claims. Apply 2 Save is not expected to have any money to pay its unsecured creditors.
When a bankruptcy is filed the court enters an “automatic stay” of all pending lawsuits. The bankruptcy code exempts the Attorney General’s lawsuit from the stay. We are presently reviewing our litigation options with respect to the claims we have filed against Apply 2 Save and its President, Derek Oberholtzer.
Despite the pending bankruptcy, we encourage affected consumers to file a complaint with our office’s Consumer Protection Division. Please provide as much information as possible in your complaint and include copies of any correspondence or contractual agreements between you and Apply 2 Save. If you have an email address, please include it in your complaint form as this is the easiest and fastest way for us to contact you.
If Apply 2 Save listed you as an unsecured consumer creditor in its bankruptcy, you likely will receive notice from the court during the next few weeks. The notice will tell you whether you should file a “notice of claim.” In non-asset bankruptcies such as this, it is unlikely the court will accept claims. However, you should review the notice for details.
Apply 2 Save closes its doors:
Apply-2-Save was the subject of almost 200 complaints by homeowners across the country. The company was supposed to help renegotiate loans but many customers claim the company took their money and failed to follow through.
Employees of the company began complaining they weren’t receiving paychecks and the Department of Labor has already received 60 wage claims against Apply-2-Save.
Read more from KREM
Apply 2 Save Names Marc Bonanni General Counsel:
Veteran Compliance, Licensing, and Consumer Affairs Expert
COEUR D’ALENE, Idaho–(Business Wire)–Apply 2 Save (A2S), Inc., a leading loan modification and loss mitigation firm dedicated to helping financially troubled borrowers keep their homes, today announced that Marc Bonanni has been appointed General Counsel. Mr. Bonanni, a veteran of more than 25 years work in corporate governance and e-commerce law, will lead A2S` compliance, licensing, and consumer affairs efforts.
“During all my years of practicing law, I can`t recall when I had a better opportunity to make a significant difference in the lives of so many people,”
Mr. Bonanni said. “Losing a home can be emotionally and financially devastating.
I am honored to be part of the professional team at Apply 2 Save, all of whom are driven to save homes and dreams, not just houses.”
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