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Consumer Affairs

Firm Impersonated Federal Agencies, Florida Claims

Made bogus claims in advertising, state says

12/13/2010 | By | ConsumerAffairs.com | Finance

Marketers often design their direct mail envelopes to appear to be from the government, hoping an "official" appearance will result in fewer pieces thrown in the trash, unopened.

In Florida, officials claim a Colorado firm took that too far, falsely claiming in advertisements that it was affiliated with the U.S. Veterans Administration, the U.S. Department of Housing and Urban Development and homeowners' lenders.

Florida Attorney General Bill McCollum has sued Assurity Financial Services for potentially deceptive practices related to refunds for insurance premiums, escrow accounts, and other funding sources.

In July 2009, Assurity Financial Services entered into a legally binding agreement with Florida and Colorado where the company agreed to halt its deceptive direct mailings and pay the states $200,000 in six payments, but did not make its scheduled payment on July 1, 2010. Based on the violations of the agreement, the Colorado Attorney General also has filed a lawsuit against Assurity Financial Services and managing partners Clavin B. Hamler and Troy P. Hamler. 

According to the complaint, which was filed in Florida's Second Judicial Circuit Court, some of the company's mailers solicited consumers in several states to apply for refunds for their mortgage insurance premiums, escrow accounts, Veterans Administration escrow accounts, and funding fees.

The mailers circulated appeared to be from the federal government and even included a Washington, D.C. return address. These representations allegedly led consumers to believe that Assurity had the authority to secure refunds for consumers. The complaint also alleges that other mailers appeared to come from the homeowners' lenders. 

McCollum says Assurity Financial Services and the Hamlers also are suspected of sending postcards to homeowners claiming home loans could be classified into more favorable loans. He says the mailers did not clearly disclose that the defendants were asking homeowners to refinance their homes through the company.

According to the complaint, Assurity Financial Services' mailings gave consumers the false impression of urgency and in some cases, the company's mailings also allegedly falsely informed homeowners they were in default, even though this was not true.

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