Missouri AG Files Lawsuit Against California Firm Allegedly Peddling Bogus Loan Modification Services

The St. Louis Business Journal reports:

• Missouri Attorney General Chris Koster filed a lawsuit Tuesday against an Anaheim, Calif., company that allegedly defrauded Missourians looking for help avoiding mortgage foreclosure. Koster said the company, U.S. Foreclosure Relief, took money from victims but did not provide any help.

• The suit, filed in Kansas City, seeks an injunction to stop the company from continuing to defraud consumers as well as restitution and penalties. In most instances, U.S. Foreclosure Relief charged homeowners a fee of $1,850 for its services, along with a processing fee of $500. The company also demanded payment upfront, Koster said. He urged victims of fraudulent mortgage-relief companies to call the state consumer hotline at 800-392-8222.

Source: Koster sues company over alleged foreclosure scam.