Mass AG Reaches Settlement With Loan Modification Firm Accused Of Violating State Consumer Protection Act, Illegally Pocketing Upfront Fees

From the Office of the Massachusetts Attorney General:

• [Last week], Attorney General Martha Coakley’s Office entered into a settlement with Express Modifications, Inc., d/b/a “Loan Mods By Lawyers, Inc.,” and its owner David J. Gotterup, who ran prominent advertisements in a local newspaper earlier this year offering to help homeowners avoid foreclosure. The settlement resolves allegations that the advertisements were unfair and deceptive, in violation of the Massachusetts Consumer Protection Act, because they gave the false impression that Express Modifications would provide the homeowner with the services of an attorney, guarantee a loan modification and improve the homeowner’s financial situation dramatically and save the home from foreclosure.

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• The Attorney General’s investigation of the company and its operations also revealed that the company demands a $1,500 up-front fee before providing services to help homeowners avoid foreclosure. Such advance fees are illegal under regulations issued by the Attorney General’s Office in 2007 to combat various unfair business practices that target homeowners facing foreclosure.

For the entire Massachusetts AG press release, see AG Coakley Enters into Settlement with Company Accused of Deceptively Advertising Foreclosure Relief Services and Soliciting Illegal Advance Fees.