On July 2, the Federal Trade Commission (FTC) announced that it obtained a $2.6 million judgment against three defendants for failing to provide mortgage modification services after collecting upfront fees from borrowers. The FTC alleged that nine defendants associated with a law firm violated the FTC Act and Telemarketing Sales Rule by sending borrowers in default postcards promising loan modifications, collecting fees for the services, and assuring borrowers that they qualified for modifications prior to obtaining lender approval. In addition, the FTC alleged that the defendants exaggerated the role an attorney would play in the modifications and pretended to be affiliated with a government agency. The $2.6 million judgment prohibits the three defendants from (i) telemarketing financial products or services, (ii) selling mortgage modification, foreclosure rescue, and debt-relief products or services, and (iii) collecting or attempting to collect from borrowers who had agreed to purchase a mortgage modification product or service. The court also approved settlements and entered a default judgment against the other defendants facing similar allegations.