Intermundo Hit for False Lead Generation Ads

Intermundo doing lead generation as Delta Prime Refinance used its Internet-based operation to drive potential borrowers for mortgage refinancing to lenders will pay a $500,000 civil penalty to settle Federal Trade Commission charges that it deceived consumers with ads that falsely claimed they could refinance their mortgages for “free.” “An ad that says you can refinance your mortgage for free is clearly deceptive, if you have to pay money at some point before you sign on the dotted line,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Lead generators need to understand that federal laws governing truth in advertising apply to them as well as everybody else.” According to the complaint, the company ran these ads on Google, Microsoft, AOL, and Yahoo, as well as on its own websites. When consumers clicked on the ads, they were sent to a landing page where they provided contact information, which was ultimately sold to providers of mortgage refinancing.