Hawaii Regulator Files Suit Claiming Unfair & Deceptive Trade Practices In Alleged Loan Modification Ripoff

In Honolulu, Hawaii, HawaiiNewsNow reports:

• State consumer protection officials are going after a Village Park woman whom they say preyed upon a struggling homeowner. They say it's the first time they have filed a lawsuit in Honolulu Circuit Court under a Hawaii law designed to protect people who are facing foreclosure.



• Consumer protection officials previously filed a similar suit on Maui. They're hoping the legal actions send a strong message to others serving as mortgage rescue consultants.



• According to the state Office of Consumer Protection, Lucy Cablay committed mortgage rescue fraud by falsely promising relief to a distressed homeowner on Oahu.

***

• The state accuses Cablay of engaging in unfair and deceptive trade practices while working as a Hawaii runner for a company operating out of Texas. The state's attorney says Cablay convinced the woman to pay an up-front fee of $3,450 to Caughern & Associates which, in turn, delivered a $600 kick-back for Cablay.



• "The ultimate end of that was that there were no mortgage rescue services, so she was out the money that she paid her," Kim said.

For more, see State files suit against woman accused of preying upon distressed homeowner.