Ohio AG Files Suit Against Loan Modification Firm For Violations Of State Consumer Statutes; Homeowners Clipped For Upfront Fees Averaging $650

From the Ohio Attorney General's Office:

• The Ohio Attorney General filed a lawsuit [last Friday] to stop a foreclosure rescue business from continuing to victimize consumers throughout the state. The lawsuit, filed in the Cuyahoga County Court of Common Pleas, alleges that James R. Van Putten, doing business as “Please Save My Home” in Conneaut, Ohio, violated Ohio’s consumer protection laws by engaging in unfair and deceptive practices. The complaint alleges violations of the Consumer Sales Practices Act, the Telephone Solicitation Sales Act, and Debt Adjusters Act.

• Van Putten obtained the names of homeowners in foreclosure from court records and used direct mail to solicit his services. The mailing stated: “Regardless of your present mortgage or loan situation, we will be able to assist you by arranging a repayment plan to bring your loan current” and “Call Today & Save Your Home.”

• Van Putten then entered into contracts through which he promised to save the consumers’ homes from foreclosure by obtaining and providing loan modifications, legal representation, and forbearance agreements. Consumers paid, on average, $650 for Van Putten’s services. The Attorney General’s investigation found that consumers did not receive the promised services.

For the press release, the accompanying lawsuit, and copies of the correspondence and contract used by the foreclosure rescue operator (Exhibits A thru D), see Mortgage Rescue Company Sued for Consumer Fraud.