Foreclosure Relief Scams: How Big is the Problem?

One of the most troubling facets of America's cheating culture is that a range of cottage industries exist that prey on people's economic misfortunes. The latest example is the rampant problem of foreclosure help scams. These are scams, as we've discussed elsewhere on the site, in which companies or lawyers promise to help a homeowner avoid foreclosure -- only to take up front fees and then do nothing.

I say this problem is "rampant" because a new study, just out by the Federal Trade Commission, reports that the government received 28,584 complaints from consumers about frauds related to mortgage foreclosure relief and debt management. The real number is probably much higher, assuming that there are plenty of other victims out there who never complained.

FTC Annual Report on Consumer Fraud