Wednesday, June 13, 2012

Indiana AG Continues With More Civil Suits Targeting Alleged Out-Of-State Loan Modification Rackets

From the Office of the Indiana Attorney General:

  • Indiana Attorney General Greg Zoeller filed five lawsuits on issues ranging from illegal foreclosure consultants to violations by local car dealerships [] in Lake County.
  • Foreclosure consultants First Financial Link, LLC and Josegan, Inc. both of Florida are accused of ripping off two Lake County victims for a total of $3,500.

  • According to the lawsuits, both businesses promised to reduce homeowners’ interest rates or monthly payments in exchange for an upfront fee. Consumers made payments ranging from $1,500 to $2,000 before realizing little or no progress had been made on their home loans.

  • The complaints allege the defendants violated the Credit Services Organization Act, the Mortgage Rescue Protection Fraud Act, the Home Loan Practices Act and Deceptive Consumer Sales Act (DCSA).

  • The companies did not register a $25,000 surety bond with the Attorney General’s Office to conduct business as foreclosure consultants in Indiana. The state seeks an injunction, restitution and civil penalties.

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