The full explanation
These companies may not charge you anything until you sign an agreement with your lender or servicer based on the offer they obtained. They also may not tell you not to talk to your lender or make you believe they are connected to the government. The rule does not cover your lender or your servicer.
An example
A company calls Ramón and promises to save his home if he pays a fee up front and stops talking to his bank. Ramón knows the rule does not allow charging before he has a signed offer with his lender. He hangs up and calls his servicer and a housing counselor.
You will see it in…
- Ads and calls that promise to “save your home” or lower your payment
- The “IMPORTANT NOTICE” disclosure the rule requires in those ads
- The CFPB's pages on loan modification scams
