Tuesday, August 14, 2012

Hawaii Regulator Scores Injunction Halting Business For Operating Suspected Loan Modification Racket

In Honolulu, Hawaii, Big Island Now reports:

  • The State is reminding homeowners to beware of foreclosure prevention scams after it received an injunction against a Keaau-based company for violations of Hawaii’s Mortgage Rescue Fraud Prevention Act and other consumer protection laws.

    The Department of Commerce and Consumer Affairs’ Office of Consumer Protection obtained a preliminary injunction on July 25 against Francha Services, LLC and its owner Edna A. Franco.
  • According to a statement released [], the DCCA stated that Franco and her business targeted consumers on Maui, Oahu and the Big Island, offering to save their homes from foreclosure. The homeowners had to pay Franco in advance before she would help them and then she did little if anything to complete any of the services she promised.
  • Violations of Hawai`’s Mortgage Rescue Fraud Prevention Act and the laws prohibiting unfair and deceptive trade practices subject offending parties to fines ranging from $500 to $10,000 per violation.

    Act 183, signed into law by Gov. Neil Abercrombie on June 28, now makes violations of the Mortgage Rescue Fraud Prevention Act a class C felony with a mandatory $10,000 fine.

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