Thursday, September 1, 2011

Indiana AG Tags Two More Loan Mod Outfits w/ Suits; Says Out-Of-State Operators Failed To Post Surety Bonds, Stiffed Homeowners On Promised Refunds

From the Office of the Indiana Attorney General:

  • Indiana Attorney General Greg Zoeller filed a lawsuit [] against two out-of-state credit services and foreclosure consultant companies that were operating illegally in Indiana.

  • Zoeller said Hoosiers in 13 Indiana counties - including Porter, Kosciusko and St. Joseph - signed contracts with Community One Law Center based in Florida and National Law Partners based in Florida and California. The lawsuit alleges both companies collected money up front and failed to provide refunds to customers after services were not provided.


  • Community One Law Center and National Law Partners are accused of violating Indiana's consumer protection laws by not registering $25,000 surety bonds with the Office of the Attorney General. Indiana law requires credit service organizations and foreclosure consultants to register bonds prior to performing any services, including collecting money up front. Zoeller said the bond acts as an insurance policy for consumers in the event a company fails to perform.

  • According the suit, these companies are separate entities, but both worked interchangeably on files and shared employees. Zoeller said deposit amounts illegally collected from Hoosiers range from $499 to $2,699.

  • This lawsuit alleges both organizations violated the Credit Services Organization Act, the Mortgage Rescue Protection Act, the Home Loan Practices Act and Deceptive Consumer Sales Act. Community One and National Law Partners also failed to obtain a certificate of authority from the Indiana Secretary of State's Office to conduct business in Indiana.

For the Indiana AG press release, see Zoeller files suit against out-of-state foreclosure consultants (Two for-profit companies illegally operating in Indiana failed to pay refunds).

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