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MADISON — Attorney General J.B. VanHollen announced today that the Wisconsin Department of Justice has obtained a default judgment of $111,861 against Relief Law Center, Inc., (d/b/a USA Loan Auditors), for violating Wisconsin's consumer protection laws in soliciting purported loan modification services.
"Homeowners should beware of scammers like these, who charge up-front fees for purported services they never intend to deliver,” Van Hollen said. “In Wisconsin it is illegal for anyone to charge up-front fees for foreclosure rescue or loan modification services. People who need assistance should contact their lenders directly or go to HUD-approved housing counselors who will work with homeowners for free.”
The lawsuit charged USA Loan Auditors, a California company, with using deceptive and misleading representations in its mail solicitations. The solicitations were designed to appear as though the company was a “loan auditor” investigating the homeowner's lender but it in fact was soliciting purported loan modification services. The judgment was obtained following the failure of the company to file an answer to the complaint. The judgment enjoins the company from further violations and orders $118,861 in forfeitures, penalties, and costs to the State for prosecution.
The judgment was entered by Dane County Circuit Court Judge Daniel Moeser. Assistant Attorney General Nelle Rohlich represented the State.
Homeowners at risk of foreclosure or in need of mortgage counseling should find a HUD certified housing counseling agency at HUD's website or at (800) 569-4287. These counselors will work with homeowners at no charge.
The FTC also has issued a warning about these scams: