Thursday, September 8, 2011

Virginia AG Cites Another Loan Modification Outfit For Allegedly Pocketing Illegal Upfront Fees, Failing To Deliver Promised Services

From the Office of the Virginia Attorney General:

  • Attorney General Ken Cuccinelli announced today that he has filed a lawsuit against R.L. Brad Street, LLC, a mortgage loan modification company based in Chesapeake, for allegedly charging illegal advance fees of up to $3,000 before performing "foreclosure rescue" services for its customers.

  • The attorney general alleges that R.L. Brad Street violated the Virginia Foreclosure Rescue Law by charging advance fees in connection with services to avoid or prevent foreclosure. Section 59.1-200.1 of the foreclosure rescue law prohibits a supplier of foreclosure avoidance or prevention services from "charging or receiving a fee prior to the full and complete performance of the services it has agreed to perform, if the transaction does not involve the sale or transfer of residential real property."

  • R.L. Brad Street allegedly collected fees of up to $3,000 in the form of checks made payable to Rhonda Wyland, the company's member/manager, from consumers before performing any services for them.

  • Cuccinelli also alleges that R.L. Brad Street violated the Virginia Consumer Protection Act (VCPA) by failing to deliver on promises to assist consumers in obtaining mortgage loan modifications. The Virginia Consumer Protection Act generally prohibits suppliers from using any deception, fraud, false pretense, false promise, or misrepresentation in connection with a consumer transaction.

For the Virginia AG press release, see Attorney General Cuccinelli sues Chesapeake-based mortgage modification company (Company allegedly charged illegal advance fees for "foreclosure rescue" services).

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