NC AG Scores 13th Win Against Upfront Fee Loan Modification Rackets

From the Office of the North Carolina Attorney General:

• A California foreclosure assistance company is the latest outfit to be banned from offering loan modification and foreclosure assistance services in North Carolina, Attorney General Roy Cooper said [].

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• This week, Wake County Superior Court Judge Abraham Penn Jones granted Cooper’s request for a default judgment against Peoples First Financial, Inc., which permanently bans the California company from performing or offering foreclosure assistance, loan modification and debt relief services in the state. The judgment also orders Peoples First Financial to pay $9,497.50 in refunds to consumers and $25,000 in civil penalties to local public schools.

• This is the thirteenth case won by Cooper’s Consumer Protection Division against foreclosure assistance and loan modification scams in the past five years and the second such win so far in 2011.(1)

For the North Carolina AG press release, see Foreclosure assistance scheme banned from NC, announces AG Cooper.

(1) With all due respect to the North Carolina AG's Office, obtaining a default judgment for approximately $35K against a now-defunct company, where none of the individual operators behind this racket have any liability for payment thereof is not exactly something to declare victory over. Anything short of a criminal prosecution will only encourage the continuation of these ripoffs.