The Federal Trade Commission, or "FTC," is a government agency whose purpose is to protect consumers in competition between businesses. In other words, it looks out for you! Oftentimes, it works collaboratively with state and federal law enforcement agencies to ensure that consumer rights are protected.

The function of the FTC recently came to the forefront of financial news when it announced a settlement of its investigation into Countrywide Financial Services handling of homeowner loans in default. Under the terms of that settlement, which is one of the largest in FTC history, Bank of America (which assumed the liabilities of Countrywide) agreed to pay up to $108 million back to homeowners who were charged "junk fees" for their home loans such as inflated inspection fees and even lawn maintenance fees.

We have heard from consumers that other major banks, such as CitiMortgage and Wells Fargo, are allegedly assessing a variety of junk fees, such as property inspection fees, on their mortgages. We urge all homeowners to carefully scrutinize any payment and fee history from their mortgage lender.

Any procedural changes in the mortgage lending and servicing industry from the Bank of America settlement remain to be seen. For the sake of consumers, we are hopeful that mortgage servicers will take heed of the results of the FTC's investigation.

The FTC generally takes on only a very few cases and does much more policing than litigating. This is another reason why wrongful foreclosure lawyers and consumer class action attorneys are watch dogs for consumers. When the FTC cannot act, consumer attorneys can protect consumer rights through litigation.

The wrongful foreclosure and class action attorneys at Phillips & Garcia have protected the rights of consumers all over the country. If you feel that you have been charged unnecessary "junk fees" by your mortgage lender, we want to hear your story. Contact us for your free consultation.