Mass AG Gets Injunction Against Loan Modification Firm Accused Of Violating State Consumer Protection Act, Foreclosure Rescue Regs

From the Office of the Massachusetts Attorney General:

• Attorney General Martha Coakley’s Office has entered into a stipulated preliminary injunction with three defendants for their alleged inappropriate business practices in offering loan modification assistance. Under the terms of the order, [...] Loan Modification Group Corporation, Mitigation LLC, and the companies’ principal, Daniel H. Fox must place $50,000 into an escrow account to be used to satisfy any judgment that the Attorney General may receive against them. Additionally, the defendants must cease collecting up-front fees and must contact all existing Massachusetts customers within 10 days to let them know about the court’s order.

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• The complaint [...] alleges that the defendants’ business practices were unfair and deceptive, in violation of the Massachusetts Consumer Protection Act, because they solicited fees in advance of services, failed to disclose the precise details of the services offered and how they would assist homeowners in avoiding foreclosure, and guaranteed a loan modification that would improve the homeowner’s financial situation dramatically and save the home from foreclosure. Through the defendants' solicitations and advertisements by telephone, emails and various websites, they claimed to be attorney-based, loan modification experts who could guarantee drastically reduced interest rates.

For the entire Massachusetts AG press release, see AG Coakley Obtains Preliminary Injunction Against Company Accused of Violating Foreclosure Rescue Regulations.