Foreclosure Rescue Company Sued
The Modification Group LLC (TMG), a Cleveland business that offered to help homeowners avoid foreclosure in exchange for $1,995 or more has been sued for alleged violations. The lawsuit alleges multiple violations of Ohio consumer law, including failure to deliver.
The Ohio Attorney General’s Office currently has 70 complaints against TMG dating back to December 2009.
Attorney General DeWine’s lawsuit, filed in the Cuyahoga County Common Pleas Court, alleges that TMG and its director, Robert Walker, charged homeowners an advance fee of $1,995 or 1% of the mortgage balance, whichever was greater, for loan modification services that it never delivered, such as eliminating late payments and lowering interest rates.
TMG contracts promised 80% refunds for homeowners who did not receive modifications, but the lawsuit alleges that TMG failed to provide refunds in many cases.
The lawsuit charges TMG with violations of Ohio’s Consumer Sales Practices Act, Debt Adjusters Act, Telephone Solicitation Sales Act and Credit Services Organization Act. DeWine is seeking civil penalties and full restitution for consumers.
Ohio Attorney General Mike DeWine announced the lawsuit.
“Ohioans should never pay upfront fees for help avoiding foreclosure,” DeWine said. “As of February 1, 2011, companies cannot charge any fees for foreclosure assistance until they receive a loan modification offer from the consumer’s lender. In addition, I encourage Ohioans to call Save the Dream Ohio at 1-888-404-4674 for free foreclosure assistance.”
“We have received dozens of complaints against The Modification Group,” Attorney General DeWine said. “Consumers said they paid advance fees for help reaching a loan modification, but never received the promised help. In many cases, homeowners who believed they were doing the right thing to help save their homes ended up in even worse financial situations.”
Courtesy Mortgage Fraud Blog