Thursday, September 22, 2011

RI AG Shuts Doors On Loan Mod Outfit Accused Of Upfront Fee Ripoffs; Pair Allegedly Stiffed Homeowners On Promised Services, Refunds Of Unearned Fees

In Providence, Rhode Island, Legal Newsline reports:

  • Rhode Island Attorney General Peter Kilmartin announced Thursday that his office shut down two mortgage modification consultants and secured $5,500 in restitution for three consumers.


  • After receiving numerous consumer complaints last year, Kilmartin's office conducted an investigation into two individuals who claimed to represent mortgage modification and foreclosure servicers Mortgage Modification Center, IMOD Corporation and Latin Service International.

  • The investigation discovered that David Conti and Lucy Ruiz were advertising and soliciting consumers in violation of several laws, including the Deceptive Trade Practices Act and the Mortgage Foreclosure Consultant Regulation Act. Kilmartin's office said that since at least April 2009, Conti and Ruiz advertised, marketed and sold purported mortgage loan modification and foreclosure rescue services, with a focus on targeting the Hispanic community.

  • Conti and Ruiz engaged in a scheme to swindle distressed homeowners by enticing them with promises of negotiating loan modifications with lenders and saying they could secure lower, fixed interest rates, principal reductions and lower monthly payments, according to the Attorney General's Office.

  • Kilmartin said Conti and Ruiz also required homeowners to pay a fee, ranging from $1,000 to $3,000, in advance of providing services. After not performing the services for which they were contracted, Conti and Ruiz then refused to refund the homeowners' money, the attorney general said.

For the story, see R.I. AG shuts down mortgage consultants.

No comments: