LITTLE ROCK, Arkansas – Arkansas Better Business warns of an increase in fraud by groups posing as mortgage providers.
According to officials, the BBB online fraud tracker It indicates that more and more people are receiving formal-looking letters that appear to be from the mortgage company’s home insurance department. The letter, in an urgent tone, claims it’s time to renew the home warranty or risk jeopardizing the mortgage.
A trick reported to the BBB is the fine print at the end of the letter. “Not all consumers have previously had insurance. We are not affiliated with your current mortgage.”
The BBB warns that if a homeowner calls the phone number provided and provides payment information, the company using the malicious ads could get personal and financial information.
The agency said the letters looked different depending on who sent them, but they were all similar in that they required an urgent response and were not from the homeowner’s mortgage company.
Officials said new homeowners are particularly at risk of falling prey to the scam.
Additional information can be found at Better Business Bureau website.