Idaho AG Files Suit Against Local Loan Modification Firm

In Kootenai County, Idaho, The Spokesman Review reports:

• Idaho Attorney General Lawrence Wasden wants to shut down Apply 2 Save Inc., the Coeur d’Alene-based mortgage modification company. His office Tuesday filed suit against the company in Kootenai County District Court, alleging violations of state consumer protection laws. The complaint, which also names Apply 2 Save President Derek Oberholtzer, says Wasden’s office has received 176 complaints from consumers all over the United States who say they got little or no service in return for up-front payments of as much as $1,500. Some ended up in foreclosure despite company claims their homes could be saved.

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• The complaint includes summaries of 18 case histories involving consumers from Connecticut to California, Michigan to Texas. Often they were told not to make any payments while Apply 2 Save was working with their lender. They had to repeatedly send documents the company said it had not received. A few said their credit card accounts were tapped without their authorization.

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• Former Apply 2 Save employees said they were directed to misrepresent company relationships with lenders and the federal government, its ability to modify loans, even the company’s name. The complaint asks the court for an injunction blocking further Apply 2 Save operations, a revocation of the company’s business license, penalties of $880,000 – $5,000 for each of the 176 alleged violations – plus attorney fees. [...] Apply 2 Save employs more than 100 at a business park on North Meadowlark Way [in Coeur d’Alene].

Source: Idaho wants Apply 2 Save shut down (Mortgage modifiers preyed on clients, AG alleges).