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Van Hollen Sues Loan Modification Company

 

JOINS DEPARTMENT OF AGRICULTURE, TRADE AND CONSUMER PROTECTION AND DEPARTMENT OF FINANCIAL INSTITUTIONS TO WARN CONSUMERS OF A NEW FORM OF FORECLOSURE RESCUE FRAUD

 

MADISON - The Wisconsin Department of Justice filed suit Friday against a company doing business as "USA Loan Auditors" for engaging in deceptive practices in the course of selling purported "loan modification" services to Wisconsin homeowners. 

 

The complaint alleges the California-based company, Relief Law Center (d/b/a "USA Loan Auditors") has engaged in deceptive practices by sending homeowners mailings that suggest the homeowner's mortgage lender is under investigation for predatory lending abuses.  The mailings falsely claim that as a remedy for the supposed-abuses, the homeowner may be entitled to a loan modification. The Idaho Attorney General issued a Cease and Desist Order against the company earlier this year. 

 

According to the complaint, when concerned homeowners contact the company, the conversation is directed to a sales pitch for purported loan modification services. 

 

"Wisconsin will prosecute those who engage in this type of activity in Wisconsin," said Attorney General Van Hollen.  "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." 

 

Attorney General Van Hollen and the Department of Agriculture, Trade and Consumer Protection previously issued a Consumer Alert, warning homeowners about loan modification scams and foreclosure rescue fraud.  The Alert gave tips on how to avoid fraud and recommended that homeowners at risk of foreclosure or in need of mortgage counseling contact certified HUD counselors, who provide free services.

 

The FTC also has issued a warning about these scams:
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt177.shtm

 

If you believe you have been victimized by this group or any other, please contact the Wisconsin Department of Financial Institutions at their Consumer Protection Hotline1-800-422-7128 or you may also file your complaint online at:
http://www.wdfi.org/contact_us/ComplaintDefault.htm

 

A copy of the civil complaint is available at:

 

2010 file: