Attorney General Sues Loan Modification Company

MADISON - The Wisconsin Department of Justice filed suit today against 21st Century Legal Services, Inc. for violating state law in the course of soliciting and selling purported loan modification services to Wisconsin homeowners.

The complaint alleges the California-based company solicited loan modification consulting services by mail, telephone and e-mail to distressed homeowners facing foreclosure.  According to the complaint, the company would make initial contact with homeowners by telephone and then follow-up by sending a company representative to the customer's home.  These representatives, in fact, were local notaries hired to go to the homes of potential customers and obtain signatures on sales agreements.  The complaint alleges the defendant instructed the notaries not to leave copies of signed agreements with customers and to obtain fees in advance of services, both of which violate state law. 

The complaint also alleges violations of the State's No Call laws.

"Let this serves as a warning to would-be scam artists that the Department of Justice will prosecute those who engage in this type of activity in Wisconsin," Van Hollen said.  "My office continues to work with the Department of Agriculture, Trade and Consumer Protection and the Department of Financial Institutions in identifying and prosecuting companies who commit fraud against already vulnerable homeowners."

A copy of the civil complaint: