Ohio AG Files Civil Charges Against Upfront Fee Loan Modification Firms Offering Help To Homeowners Facing Foreclosure

From the Ohio Attorney General's Office:

• Ohio Attorney General Richard Cordray has filed a lawsuit against two Cincinnati-based foreclosure rescue companies accused of failing to deliver on their promises to save consumers from foreclosure. The suit, filed in the Hamilton County Court of Common Pleas, charges Foreclosure Assistance USA, Inc. (FA USA) and American Foreclosure Professionals, Inc. (AFP) with several violations of Ohio consumer protection law.(1)

• "These companies have been sending direct-mail solicitations that specifically refer to the foreclosure lawsuit an individual consumer is facing by its unique case number," said Attorney General Cordray. "The companies said they could offer immediate assistance in saving the consumer's home from foreclosure, but they failed to do so. They promised work-out agreements, but did not deliver."

For more, see Foreclosure Rescue Companies Sued for Deceptive Practices.

(1) According to the story, the lawsuit charges the companies with violating Ohio's Consumer Sales Practices Act, Credit Services Organization Act and Debt Adjusters Act. The Attorney General's Office currently has four unresolved complaints against AFP, with damages ranging from $700 to $900 each. The office also has four unresolved complaints against FA USA, with alleged damages between $900 and $1200 each.