"Zero Tolerance" For Loan Modification Scams, Says Missouri AG As Civil Charges Brought On Outfit Allegedly Charging Upfront Fees & Failing To Deliver

In Kansas City, Missouri, Missourinet.com reports:

• Missouri has filed suit against a Kansas City firm, claiming that it is preying on people who are desperate to save their homes. Attorney General Chris Koster has filed suit against Premier Credit Services of Kansas City and principals Michael and Angela Eads. Koster accuses the couple of promising homeowners facing foreclosure that they could drop their interest rate, lower their house payment and repair their credit.

• Koster says his office has mounted a "zero tolerance" campaign against mortgage fraud. "There's no doubt that the mortgage fraud scams that we're seeing are spiking as a result of the economy," Koster says. "In the first six months of this year, we have seen twice as many complaints come into the Attorney General's office as we saw in all of 2007 and 2008 combined."

• Koster accuses Premier of engaging in two practices that should be red flags for fraud: charging up-front payments and portraying themselves as being part of the federal government.

Source: AG files suit against KC firm, claiming mortgage fraud.

For the Missouri AG press release, see Attorney General Koster files lawsuit against Kansas City company (Continues Zero Tolerance Campaign against mortgage fraud).