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COEUR D'ALENE -- The Federal Trade Commission has filed a lawsuit against bankrupt North Idaho loan modification company, Apply 2 Save.
The lawsuit is part of a series of legal actions announced by the FTC Wednesday.
Apply 2 Save closed in May, after customers filed hundreds of complaints. Many claimed the company took their money and never delivered on modifying home loans.
The number of customers claiming they were ripped of by the company now exceeds 400.
Apply 2 Save was supposed to be a middle-man for people at risk of losing their homes, but, the suit claims the company took peoples money then never renegotiated with lenders. In some cases a second round of fees were take from people without their knowledge and some of those people lost their homes.
The company also said it would give customers refunds, but the F.T.C. says that never happened
At the same time, the Idaho Attorney General's office says it has settled with the former Vice President of Sales for Apply 2 Save, Steven Lux.
Lux agreed to pay $50,000, which will be returned to the victims of the company.
Apply 2 Save and its owner, Derek Oberholtzer, are still in bankruptcy court.
The company filed for bankruptcy in June. Former employees said they had not been paid for weeks.
