Indiana AG Tags Foreclosure Rescue Operator With Civil Lawsuit; Alleges Violations Of State Credit Service Organization, Deceptive Consumer Sales Acts

The Office of the Indiana Attorney General announces:

• Indiana Attorney General Steve Carter has filed a lawsuit against Indianapolis-based Capital Foreclosure, Inc. seeking nearly $20,000 in restitution for customers and an injunction to halt the company and its operators from illegal practices. “Some people lost their homes after placing their trust with this company,” Carter said. “The company exploited the vulnerability of its customers who faced foreclosure.” Nearly 20 people sought “Foreclosure Rescue” and credit counseling services from Capital Foreclosure and its operators, Eriq Brye, Kenneth Brye and Sallie Brye. Individuals paid fees and other costs that ranged from $40 to as high as $4,100.

The AG's lawsuit alleges the following violations of Indiana’s Credit Service Organization Act:

• Failure to obtain a $10,000 surety bond,
• Failing to provide legally required disclosures on contracts,
• Failure to provide two copies of a Notice of Cancellation form for buyers.

The AG's lawsuit also alleges the following violations, among others, of Indiana's Deceptive Consumer Sales Act:

• Promising a full money-back guarantee and then failing to give the refund when failing to stop foreclosure,
• Representing having the characteristics of experienced consultants with in-depth industry knowledge on how to avoid and stop foreclosure.

For more, see Indiana AG News Release: Attorney General Steve Carter Says Foreclosure Rescue Company Left Customers Out in the Cold.

For a copy of the lawsuit, see State of Indiana v. Capital Foreclosure, Inc., et al.

See also, WRTV Channel 6 report: State: 'Foreclosure Rescue' Company Ripped Off Hoosiers (State Seeks Restitution, Fines).