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Money For Nothing

Seattle, WA: (Apr-21-08) The State Attorney General's Office brought a lawsuit against Foreclosure Assistance LLC, of Clearwater, FL, alleging that the company pocketed homeowners' money but failed to do anything that could concretely help them save their homes. Foreclosure Assistance LLC is a company that offered rescue services to homeowners struggling with their mortgages. The suit claimed that homeowners paid between $1,200 and $1,500 to Foreclosure Assistance, in a bid to help save their homes. The federal office stated that the company used coercive tactics to pressure consumers into paying for a service they really couldn't afford and then doing little or nothing to actually help those consumers.

Court records indicate that the Texas Attorney General's Office investigated the company and sought to freeze its assets in September 2007. It then went out of business. Officials said that TX also settled with the company earlier this month.

In Washington, the Attorney General's Office accused the company of using unfair and deceptive tactics in soliciting customers. Customers who signed up for services were given a contract prohibiting them from contacting their mortgage lender. The state claimed that the contract also prohibited consumers who paid using a credit card from trying to dispute the charges with the credit-card issuer.

As part of a settlement reached in the suit, the company agreed to refund about $75,000 to 200 Washington consumers. The company did not admit wrongdoing in agreeing to settle, but agreed to refund $78,125 to consumers and pay $20,000 in attorneys' fees. State officials said that each consumer will approximately get between $300 and $500, which the state will begin mailing to eligible customers within the next three months. [SEATTLE POST INTELLIGENCER: MORTGAGE RESCUE COMPANY WILL REFUND CUSTOMERS IN SETTLEMENT]

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Published on Apr-23-08


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