Save the American Dream Car loan modification was a fraud. They claimed to lower my car loan, when they just took my $350. Fort Lauderdale, Florida

Even the Attorney General for Florida is investigating these auto loan modification companies as they are scams. In June 2010 Attorney General Bill McCollum filed a lawsuit against Auto Relief Group out of Fort Lauderdale. Their pitch is the same as the one given to you:

1) Give $X dollars up front to modify your loan by reducing the interest rate and promising a largedrop in the monthly payment;

2) They state they have a "relationship" with your lender and have done these type of modifications successfully before.

However, no one can modify your loan with your loan company. You can try to get a deferral of your payment or try to change the payment date to one that bettermeets your income dates, but the interest rate and payment amounts don't change unless you refinance with another lender.

The scam works because you want a reduction in your loan payments and the amount of money you pay up front is relatively small. NEVER PAY UPFRONT MONEY FOR A LOAN MODIFICATION, it'sabig red flag.

Report this company to the AG's officeso they can investigate this company too (if they aren't already investigating).