Loan Modification Operator Denies Taking Upfront Fees; Says Money Taken Was For "Attorney Fees"

In Kansas City, Missouri, The Kansas City Star reports on Livonia, Michigan's Expert Financial Services, a loan modification outfit, led by its chief - Rick White, that has been accused of ripping off some local homeowners out of thousands in upfront fees. The following excerpt describes his responses to allegations when contacted by the media:

• White didn’t return my call to his office or answer an e-mail I sent him. But a former employee who said she was owed back pay gave me his cell phone number, and we talked for a while the other day. He refused to discuss Diane’s situation or discuss his business practices in general, other than to say that upfront fees he charges are for “attorney’s fees” and not for the mortgage modification process.

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• Well, you might be interested to know that the Michigan attorney general’s office has received at least 10 complaints about the same company, which has been in business for less than a year.(1) Those complaints are “under review,” an official said. Meanwhile, the Better Business Bureau gives Expert Financial Services an “F” rating. On the Internet, you’ll find scads of bad reviews from former customers.

For the story, see Foreclosure rescue schemes a costly trap for homeowners.

(1) Inasmuch as the Michigan Attorney General's office has shown no reluctance in bringing criminal charges against alleged loan modification scams, it may simply be a matter of time before it gets around to slamming this outfit. See:

• Michigan AG Files 19 Criminal Complaints Setting Forth 69 Charges Against Individuals, Firms Running Alleged Advanced-Fee Loan Modification Operations,
• Michigan AG Files Criminal Charges In Separate Cases Alleging Loan Modification Firms Clipped Homeowners For Upfront Fees, Then Failing To Help (involving three criminal complaints containing a total of ten charges).