Thursday, December 17, 2009

Maine AG Tags Three Out-Of-State Firms With Civil Suits Alleging Illegal Loan Modification Activity

From the Office of the Maine Attorney General:

  • The Maine Attorney General has filed three separate lawsuits in Kennebec County Superior Court against three out-of-state businesses and their principals. The defendants are: Elect Group, LLC, Anthony Ferlanti and Emmanuele Zuccarelli (Florida); Help Modify Now Debt Solutions, Inc., Help Modify Now, Inc. and Chas Bain (California and Nevada); and US Advocate Law Group, P.C. and Jeff Nemerofsky (California).

  • These lawsuits allege that the defendants used deceptive and unfair practices in marketing so-called “debt settlement” services, in the form of foreclosure rescues and mortgage modifications, and that they failed to register as debt management services under Maine law.(1) The suits seek the recovery of fees paid by Maine consumers to these defendants, as well as civil penalties and costs.

For the Maine AG press release, see Attorney General Sues Unlicensed Foreclosure Rescue/Mortgage Modification Companies.

(1) According to the press release, the State alleges that the defendants’ illegally high upfront charges ranged from $1,000.00 to $4,300.00. Maine law prohibits debt management service providers from charging more than a $75 set-up fee and for charging more than 15% of the amount by which the consumer’s debt is reduced as part of each settlement. The State also alleges that the defendants misrepresented the benefits of their programs to consumers and refused to provide refunds when consumers asked for them after the defendants failed to prevent foreclosure. As a result, many Maine consumers found themselves in more dire financial straits than they were before they engaged the defendants, the press release states.

No comments: