Thursday, October 27, 2011

Rhode Island AG Scores TRO In Effort To Shut Down Alleged Loan Modification Racket Accused Of Clipping Homeowners With Upfront Fees For Phony Promises

From the Office of the Rhode Island Attorney General:

  • Attorney General Peter F. Kilmartin announced the Office sought and received a temporary restraining order shutting down East Coast Fidelity, LLC, aka Fidelity Corp., and the company’s manager Janice McCarthy, citing the company in violation of the state’s Deceptive Trade Practices Act and the Mortgage Foreclosure Consultant Regulation Act.

  • East Coast Fidelity, with a business address of 10 Dorrance Street, Providence, advertised and marketed itself to homeowners across the country as a loan modification and foreclosure rescue services provider.


  • The law is clear in Rhode Island that the soliciting of upfront fees for loan modifications or other types of foreclosure relief, is absolutely prohibited,” said Attorney General. “As a result of these unconscionable and unscrupulous actions, homeowners, who are already desperate to save their homes are put in danger of imminent and irreparable harm. These types of scam artists are devoid of conscience in their deceptions and must be shut down.”

  • The Office began to investigate the company after receiving multiple consumer complaints from several states, including New York, North Carolina, and Kentucky that the company required upfront fees for mortgage modification and foreclosure services in violation of the Mortgage Foreclosure Consultant Regulation Act.

  • Several weeks or months after signing a contract and paying the upfront fees, consumers complained of not receiving the promised services and in most cases could not get a refund from the company.

For the Rhode Island AG press release, see Attorney General Kilmartin Shuts Down Fraudulent Mortgage Modification Company.

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