An East Syracuse company is in trouble with the state attorney general tonight for sending out hundreds of thousands of misleading advertisements. Both sides reached a settlement today on the case.
The Attorney General says Upstate Capital, a reverse mortgage lender, targeted senior citizens by pretending to be a local non-profit organization.
In an ad sent out to over 625,000 senior New Yorkers, Upstate Capital says there’s a government program that can provide eligible seniors with monthly tax free income.
What the ad doesn’t say is that they’d be signing up for a reverse mortgage, a loan that will have to be paid back. Another problem with the ad according to the AG is that it appears to come from a non-profit organization when in fact they’re mortgage brokers.
Under the settlement with the Attorney General’s office, Upstate Capital will have to pay a $20,000 fine and change its advertisements to clearly indicate that it is a state-registered broker of reverse mortgage loans.
Reverse mortgages are only available to homeowners 62 and older.
For more details on reverse mortgages, visit these websites:
AARP:
http://www.aarp.org/money/revmort/
National Reverse Mortgage Lenders Association:
http://www.reversemortgage.org/
Found here.
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