Missouri AG Nixon Warns Of Misleading Solicitations That Appear To Come From Consumers' Banks

May 7, 2008 -- Jefferson City, Mo. - Missouri Attorney General Jay Nixon says Missourians are receiving letters in the mail offering mortgage insurance, refinancing and other services. He says while many of those solicitations are designed to look like they come from a consumer's mortgage lender, they actually come from a separate, unrelated company.

Several different financial institutions have complained to the Attorney General's Office that their mortgage holders are getting flyers in the mail using the name of the consumer's financial institution in bold type, capital letters or some other prominent display. Some flyers offer mortgage insurance to cover the borrower's debts in case of disability or disaster. Other mailings come from a competing lender, hoping to convince a borrower to refinance and move their mortgage.

"The companies sending this deceptive junk mail are hoping to take advantage of the trust customers have with their mortgage lender," Nixon said. "Consumers need to know that just because an offer has the name of their bank, credit union or mortgage company on it, that doesn't mean it's from that lender."

Nixon says consumers receiving these mailings should check with their lender to see if there is any relationship to the product being offered, then report the solicitation to the Attorney General's Office.

In addition to the mailings, consumers are also reporting telemarketing calls offering these services. These phone calls may violate Missouri's No Call law, and consumers should file complaints toll free at 1-866-NOCALL1 or online at ago.mo.gov. Any consumers not on the No Call list can sign up for free online or by calling that number. More than 2.5 million phone numbers are registered on the list, and consumer complaints against telemarketers have allowed Nixon's No Call unit to collect more than $3 million in penalties from violators.

Consumers with questions or complaints can call Nixon's Consumer Protection Hotline at 1-800-392-8222 or submit them online at ago.mo.gov.

Source: Missouri Attorney