Arizona AG Files Suit Against Firm For Allegedly Deceptive Loan Modification Services; Says Victims May Number In The Thousands

From the Office of the Arizona Attorney General:

• Attorney General Terry Goddard has filed a lawsuit against Discount Mortgage Relief and Mortgage Relief, LLC, (DMR/MR), based in Scottsdale, and its owners for engaging in allegedly deceptive loan modification services. The Attorney General’s Office also secured a Temporary Restraining Order that prevents DMR/MR from charging or receiving money for loan modification services and from advertising its services. [...] According to court documents, the number of victims may number in the thousands.

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• The lawsuit alleges that at least since July 2009, DMR/MR deceived consumers into paying thousands of dollars for mortgage loan modification services by misrepresenting the company’s ability to help them obtain mortgage relief and save their homes, thereby violating the Arizona Consumer Fraud Act.(1) Consumers allegedly paid DMR/MR between approximately $1,350 and $5,000 for loan modification services and were guaranteed results by the company.

For the Arizona AG press release, see Terry Goddard Files Lawsuit against Loan Modification Company,Obtains Temporary Restraining Order to Protect Homeowners.

(1) The allegations include:

• Misleading consumers into believing they were pre-qualified and guaranteed to receive a loan modification through the company’s services.
• Falsely promising favorable results and telling consumers that any foreclosure proceedings against their homes would stop once they hired the company.
• Misrepresenting that the company used attorneys to negotiate consumers’ loan modifications.
• Falsely stating that they were associated with or acting on behalf of the government and associated with or acting on behalf of the consumer’s lender.
• Falsely stating that the company was “FBI certified”.
• Misrepresenting the nature of the company’s loan modification services by referring to them as forensic loan documentation audits or analyses.
• Falsely promising consumers that they would receive a refund of fees if the company failed to get them a loan modification and failing to return fees to some consumers who decided not to hire the company and never signed a contract.