Auto loan modification scheme targets drivers who can't make payments

Consumers asked to pay in advance for unperformed services

PEMBROKE PARK, Fla. – "It was everything I had hoped for.  I had taken several months of research," said Bonnie Byers.

The 2010 black lexus was the car of her dreams. That changed after losing her job as a resident property manager. Suddenly overnight, the Port Saint Lucie resident was homeless and saddled with a car payment she could no longer afford.

"It was unexpected so I wasn't prepared," Byers said. 

Desperate to keep her car she reached out to carpaymenhelpcenter.com.

"I was reaching for straws," Byers said.   

The Federal Trade Commission told Local 10 News that the website was run by Ivan Levy,who owns Regency Financial Services. 

Read: FTC on Regency Financial Services

Byers said Levy promised to keep her car from the repo man and secure her a lower monthly payment as soon as she paid an upfront fee.

"He said, 'I want to act fast. I want to get this moving.  The first thing that I want you to do is stop your car from repossession, which I'm doing at this moment as we speak.  And then I'm going to drop that interest rate to lower you payment,'" said Byers.

"Those are outright deceptive practices," said Cindy Liebes, an attorney with the FTC.

WATCH: FTC on auto loan modifications

The FTC heard from dozens of other consumers too.  An undercover investigator with the FTC found Levy was asking roughly $499 to modify auto loans which never happened. 

"That is a pitch they call a scam. It is illegal to collect an upfront fee if you are promising you can modify someone's loan," said Liebes. 

READ: Complaint for permanent injunction and other equitable relief

The FTC charged Levy with four counts of unfair or deceptive practices.  

The Florida Office of Financial Regulation charged him with nine counts of unlawful taking of advance fees earlier this year.  Trial is set for later this year by the Palm Beach County State Attorney. 

The FTC is calling attention to this case to say watch out: they're tracking rising auto loan modification scam complaints. 

"Auto loan modification is just one off from the home loan modifications.  People may be making promises that they can't keep.  That's exactly what happened with the auto loan modifications," said Liebes. 

Local 10 News caught up with levy at his Boynton Beach home.

"At the end of the day did you do what they say you did -- take people's money and do nothing," asked Local 10's Christina Vazquez. 

"We're settling," said Levy.

But when asked about Byers the interview quickly ended.

"We're not going to do this anymore. We have an attorney," said Levy.

Byers reflected on her experience choking back tears.

"I don't want anybody to ever experience (that.) At  that moment in your life when you're reaching out for someone to help, and you think your safe and you find out after that you are not.  That was a hard experience to live through," Byers said.

Byers' 2010 Lexus was eventually repossessed and she's still paying off the loan.  If found guilty, Levy may face up to five years in Florida State prison on each count. 

Follow Christina Vazquez on Twitter @CallChristinaTV

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