Beware of Home Equity Line of Credit (HELOC) Scams Targeting Homeowners
At Media Credit Union, protecting our members is our top priority. We want to alert you to a scam targeting homeowners with Home Equity Lines of Credit (HELOCs). This scheme involves deceptive mailers that appear to come from your mortgage lender, urging you to “renew” a home warranty.
How the Scam Works
Scammers use publicly available mortgage information to make their mailers look legitimate. In the United States, mortgage loans are recorded with the county where the property is located—typically in the county recorder’s office. These records include your name, your lender’s name, the property address, and even the loan amount in some cases. Because this information is public, scammers can tailor fraudulent letters to look like they’re from your actual lender.
One recent example reported by a member involved a company called Home Warranty Direct. The letter claimed to be from the “Home Warranty Dept” of “Spokane Media Fcu” and warned that their home warranty was about to expire. The mailing looked like a check, complete with tear-away sides.
But in fine print—if it’s there at all—the letter admits:
“We are Not affiliated with Spokane Media FCU.”
If you call the number and “renew” your warranty, you’re not dealing with us. You’re giving personal and financial information to a company using misleading tactics.
The scam is like those extended car warranty calls—while the product may exist, the sales tactics are deceptive and designed to pressure you into acting quickly.
What You Can Do
- Read the fine print carefully.
- Verify the sender before responding to any mail about your mortgage or home warranty.
- Contact Us at Media Credit Union directly if you're unsure about any communication.
- Report suspicious mail to us, the Better Business Bureau (BBB), and your local consumer protection agency. To learn more about this specific scam you can also check out the BBB Scam Alert: BBB Scam Alert: This solicitation looks like a notice about your mortgage. Here’s how to spot it.
