Request Legal Help Now - Free

LAWSUITS NEWS & LEGAL INFORMATION

No Closing Costs

Phoenix, AZ: (Sep-24-07) Attorney General Terry Goddard's office brought charges against Lenox Financial Mortgage, LLC, alleging that the Atlanta-based mortgage broker violated the Arizona Consumer Fraud Act by failing to include disclaimers in its radio advertisements promoting Lenox Financial's no closing costs mortgage loans. The suit claimed that Lenox Financial ran thousands of radio ads in Arizona that promised "no closing costs" mortgage loans to consumers wanting to buy a home or refinance existing mortgage loans. As per court documents, the company's "no closing costs" ads did not contain any disclaimer or other qualifying language stating that the availability of this kind of loan depended on the consumer's credit score, income level, debt load, or other indications of credit-worthiness. Though a majority of Lenox Financial's customers were offered the loans, the complaint alleged that the company did not broker such loans for every consumer who replied to its advertising and was otherwise eligible for a mortgage loan.

In a settlement reached, Lenox Financial Mortgage agreed to pay Attorney General Terry Goddard's office $95,000. Additionally, as part of the settlement, in the form of an Assurance of Discontinuance, Lenox Financial agreed to include a disclaimer or other qualifying information when advertising the availability of "no closing costs" loans unless Lenox Financial makes these loans available to all consumers who are otherwise eligible. [ARIZONA CENTRAL: MORTGAGE FRAUD]


Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.
Published on Sep-25-07


ADD YOUR COMMENT ON THIS ISSUE

Fields marked * are mandatory. Please read our comment guidelines before posting.

*Name:

Note: Your name will be published with your comment.

*Email Address:

Your email will only be used if a response is needed.
*Your Comment:

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.

Request Legal Help Now! - Free