Friday, April 3, 2009

Court Orders Temporary Shut Down Of Miami Loan Modification Firm; Company Directed To Refund Upfront Fees Within 90 Days

From the Office of the Florida Attorney General:

  • Attorney General Bill McCollum [Friday] obtained a temporary injunction against Lincoln Lending Services, LLC and owner Rita Gomez, prohibiting the company from engaging in any type of consumer-debt related service or mortgage modification service and from taking payment from consumers for such services until further order of the court. The company will also be required to preserve and allow inspection of its records and refrain from liquidating its assets.

  • In addition to freezing the company’s assets, the order requires that the company refund any up-front payments made by consumers for foreclosure-related rescue services subsequent to October 1, 2008, the effective date of the law prohibiting up-front charges.

  • These refunds should be completed within 90 days and will be made without the necessity of consumers filing a claim. The Attorney General's Economic Crimes Division sued Lincoln Lending and Gomez earlier this week (press release, lawsuit) for allegedly charging up-front fees for loan modification services in violation of the Foreclosure Rescue Fraud Prevention Act. The Attorney General’s office has received hundreds of complaints regarding this case since the lawsuit was filed. Both parties agreed to this order.

For the Florida AG's press release, see Temporary Injunction Obtained in Foreclosure Rescue Fraud Lawsuit.

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