Thinking about using a pre-checked box to obligate buyers in an online transaction? Maybe you’re considering a negative option arrangement without clearly and conspicuously disclosing the details of the deal. Or perhaps you’re an affiliate marketer who’s concluded that legal compliance is somebody else’s responsibility. A $4.8 million judgment entered by a federal court in California suggests you might want to reconsider those strategies.
It’s called the MAP Rule — and it will help chart the course for people in the market for a mortgage by banning deceptive claims about mortgages in advertising and other commercial communications. If you’re in the mortgage business, it’s worth your time to find out more about the rules of the road.
As businesses executives have noticed, recent changes in the credit laws reflect a move toward more transparency. For example, it’s generally lawful to factor a consumer’s credit history into your decision about what rate to offer them. But last year, the FTC and Federal Reserve Board shed a little more light on that process by implementing the Risk-Based Pricing Rule.
Homeowners in financial trouble aren’t getting a lot of great news these days. But 450,177 of them will be getting a check in the mail that represents their share of the FTC’s $108 million settlement with mortgage giant Countrywide. And companies that take advantage of Americans struggling to pay the bills will be getting a little something, too: a strong message from the FTC that unfair or deceptive practices targeting cash-strapped consumers won’t be tolerated.