Thursday, October 27, 2011

Illinois AG Slams Outfits, Individuals In Three Seperate Suits Alleging Operation Of Upfront Fee Loan Modification, Debt Settlement Scams

From the Office of the Illinois Attorney General:

  • Attorney General Lisa Madigan [] filed lawsuits against three Chicago area companies for fraudulent mortgage rescue and debt settlement schemes that cheated consumers out of large thousands of dollars.(1)

  • Madigan filed the lawsuits [] in Cook County Circuit Court, alleging the three companies took large upfront fees from consumers with a promise to help them obtain a loan modification on their mortgage or to reduce their mounting debt, when in fact, little or no work was performed on the consumers’ behalf.

  • These companies are nothing more than scam operations, illegally charging consumers upfront fees but doing no work to help modify their loan or negotiate with creditors,” Attorney General Madigan said. “They scammed families out of thousands of dollars while putting people deeper in debt and at higher risk for foreclosure.”

For the entire Illinois AG press release, see Madigan Files Three Lawsuits Against Chicago Area Mortgage, Debt Settlement Scams.

(1) According to the press release, the Attorney General filed suit against Debt Care Financial Group Inc., in Chicago, and its president Malgorzata Baran, and Starlex Financial Consulting LLC and Flagship Mortgage Corporation, in Deerfield, and employees Jeffrey M. Entratter and Neil Borland. Madigan also filed suit against E.A.C. Financial LLC, based in Chicago, and its owners Everett D. Pope and Colbi Andry.

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