Missouri AG Tags Two Firms With Civil Suits Alleging Bogus Refinancing Offers
- Missouri Attorney General Chris Koster sued two mortgage brokerages Monday for allegedly misleading consumers with letters that appeared like they were from banks or the government. “These are outrageous misrepresentations that are illegal in Missouri,” Koster said at a news conference Monday in St. Louis. Koster sued Gold Star Home Mortgage, which is based in Columbia, Mo., and Oxford Lending Group, which is based in Columbus, Ohio.
***
- Gold Star sent direct-mail letters to consumers with the consumers’ own bank name at the top of the letter, making it appear that consumers’ bank was encouraging them to refinance, according to the lawsuit. And in at least one case, the business offered a loan that likely would have left a homeowner with a mortgage that was higher than the home was worth, Koster’s office said.
- Oxford Lending Group mailed letters to consumers making it appear it was about the economic stimulus package and from the federal government, according to the lawsuit. Koster said his office learned of the allegedly misleading solicitations after hearing complaints from consumers and local community banks.
- Earlier this month, Koster sued U.S. Foreclosure Relief, an Anaheim, Calif., company that allegedly defrauded Missourians looking for help avoiding mortgage foreclosure. He urged consumers to send any suspicious solicitations to his office in Jefferson City. He also asked consumers to call the state consumer hotline at 800-392-8222 or visit the attorney general’s Web site.
Source: Koster sues 2 mortgage brokerages.
For the Missouri AG's press release, see Attorney General Koster declares ‘Zero tolerance’ on mortgage scams: Files suit today to stop two more businesses:
- [Attorney General Koster] also said he wants consumers to send him the offers they are receiving in the mail. "Pack them up and send them to our office in Jefferson City," Koster said. "We will look at what you send us, investigate each new deceptive tactic and prosecute to the fullest extent of the law," he said. "That's what 'Zero Tolerance' for mortgage scams means in Missouri."
<< Home