On July 27, 2017, the Arizona Attorney General’s Office (Arizona AG) announced that it had obtained a judgment against an allegedly fraudulent mortgage relief company and its owner. The company is alleged to have targeted homeowners who were considering defaulting on “upside down” mortgages. The company purportedly promised to take over…
On March 27, 2017, the North Carolina Attorney General (“AG”) announced that it had settled a lawsuit filed in the Wake County, North Carolina Superior Court against a student loan company. As a result of the settlement, the parties filed a consent judgment requiring that the company pay $377,048 in restitution…
On March 7, 2017, the United States Attorney’s Office for the Eastern District of New York announced the sentencing of an individual defendant to 15 years in prison and $2.5 million in forfeiture in connection with a loan modification scheme. The defendant may also be subject to additional restitution under the…
On February 23, 2017, the Federal Trade Commission (FTC) announced that it entered into a settlement with the final individual defendant in an alleged mortgage relief scheme worth over $1.7 million. As a result of a joint federal-state enforcement sweep known as “Operation Mis-Modification,” the FTC filed a complaint in…
On January 11, 2017, the Federal Trade Commission (FTC) announced that it had agreed to two stipulated orders (available here and here) with individuals who participated in an alleged fraudulent mortgage relief scheme. According to the FTC, the individuals promised consumers “at least $75,000” or complete relief on their mortgages through a “mass joinder lawsuit.” The…
On March 18, 2016, the Consumer Financial Protection Bureau (CFPB) announced that a federal district court entered final judgment against a debt relief company over allegations the company charged illegal upfront fees and engaged in other deceptive business tactics. The CFPB filed suit against the company in 2013, alleging violations of the…
On February 25, the Federal Trade Commission (FTC) announced that on February 16, the U.S. District Court for the Southern District of California entered a temporary restraining order against a debt relief provider that allegedly deceptively marketed home loan modification services and student loan modification services. The Complaint alleged that for several months…
On January 12, the U.S. Department of Housing and Urban Development (HUD) announced that it filed administrative charges against three California home loan modification assistance companies and their employees, alleging that they targeted Hispanic homeowners by charging thousands of dollars for services that were never provided or were ineffective. HUD’s…
On August 17, 2015, the North Dakota Attorney General’s Office announced it entered a cease and desist order against a regional consumer credit services company. According to the Attorney General, the company solicited business using illegal robocalls that promised interest rate reductions and other loan modification services. The company allegedly called…
On August 13, 2015, the Ohio Attorney General announced that it had filed a complaint against several loan modification companies that allegedly misrepresented to Ohio consumers the nature of their services. The complaint alleges that the companies violated the Ohio Consumer Sales Practices Act and the Ohio Debt Adjuster’s Act by representing…
On June 26, 2015, the Maryland Attorney General announced the filing of administrative charges against a regional law firm over claims the firm charged illegal advance fees in connection with loan modification services. According to the Maryland Attorney General, lawyers at the firm promised consumers that they could obtain modification…