California-Based Law Firm To Cough Up $28K+ To Settle Oregon AG Charges Of Deceptive Advertising, Illegal Collection Of Upfront Fees For Loan Mods

From the Office of the Oregon Department of Justice:

• Oregon Attorney General John Kroger [...] announced a settlement that will provide refunds to some Oregon homeowners and prohibit a California law firm from doing further loan modification work in Oregon.

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• The Oregon Department of Justice investigated allegations that The USMAC Law Group violated state law by collecting advance fees for loan modifications aimed at preventing foreclosure sales. The investigation also focused on allegedly deceptive infomercial advertising for the firm's loan modification program that was broadcast nationally on satellite television as well as allegedly non-compliant contract language. The 2008 Oregon Mortgage Rescue Fraud Protection Act prohibits loan modification companies from collecting advance fees and using confusing contract language.

• The settlement will provide a total of $6,857 in refunds to two Oregon consumers. Nine additional Oregon consumers who contracted with The USMAC Law Group may also be eligible for refunds. The company also must pay $22,000 to the Oregon Department of Justice and cease doing loan modification work in Oregon. The settlement, in which The USMAC Law Group admits no wrongdoing, was filed in Marion County Circuit Court this week.

For the Oregon AG press release, see Oregon Attorney General John Kroger Uses Mortgage Fraud Protection Law to Crack Down on Loan Modifications (The USMAC Law Group is prohibited from doing loan modifications in Oregon and must pay $28,857 under a settlement with the Oregon Department of Justice).