The U.S. Federal Trade Commission (FTC) will use new authority to bar lending practices by mortgage brokers who have deceived borrowers, Bloomberg said, citing the FTC's chairman.
A $410 billion spending package passed by Congress in March authorizes the FTC to ban abusive practices such as deceptive advertising and servicing procedures, FTC Chairman Jon Leibowitz told the news agency in an interview.
With the U.S. economy in recession, we have to step up our vigilance on predatory practices in the financial services area as there are a lot of American consumers that are hurting, the agency cited Leibowitz as saying.
Leibowitz also vowed more aggressive enforcement of antitrust laws to challenge business practices by companies which harm competition, the agency said.
(Reporting by S. John Tilak in Bangalore; Editing by David Holmes)