Wednesday, August 17, 2011

Minn. Regulator: Loan Mod Racket Clipped Dozens Out Of $360K In Upfront Fees, Then Stiffed Them Out Of Refunds For Promised But Undelivered Services

From the Minnesota Department of Commerce:

  • The Minnesota Department of Commerce has charged Eden Prairie-based Modify My Loan US, LLC, its owners and principals with allegedly defrauding approximately 200 homeowners, mostly from Minnesota, charging them a collective $362,203 in advance fees.

  • The company, which began operations in Minnesota without a license, also allegedly used false advertising, failed to disclose to customers its precarious financial condition, charged customers fees for loan modification services which were ultimately not provided, and failed to make promised refunds.

  • According to the department, Modify My Loan US, LLC (MML) charged many Minnesota consumers advance fees ranging from $2,000 to $2,950 for loan modification services, even though the company's contracts with those customers promised no such fees would be charged. Roughly 200 homeowners paid a collective $362,203 in fees.

For the Minnesota Department of Commerce press release, see Commerce Charges Loan Modification Firm with Scamming 200 Homeowners Out of $362,000.

No comments: