Thursday, July 09, 2009

Maine Regulators Issue Cease & Desist Orders To Fifteen Out-Of-State Loan Modification Firms Accused Of Pocketing Upfront Fees, Failing To Deliver

From the Maine Bureau of Consumer Credit Protection:
  • State regulators [Tuesday] issued orders directing 15 separate foreclosure rescue companies to cease doing business with Maine consumers.(1) The companies, all located out of state, enticed consumers with radio, television and internet advertisements promising to help the consumers avoid foreclosure but then took the consumers’ advance fees and did nothing to assist the consumers.

  • “Many debt management companies comply with the law and become licensed and bonded for the protection of consumers,” said Will Lund, Superintendent of Consumer Credit Protection. “These 15 companies, on the other hand, made false promises and then took money from desperate folks who could least afford to lose those funds.” The companies took a collective $36,000 in advance fees from 30 Maine households, but have not saved a single home in the State from foreclosure nor reduced a single debt for a Mainer, said Lund. Further, he said, the companies have ignored all communications from state regulators. “It’s heartbreaking to talk to consumers who have sent their last $495, $995 or $1,495 to a company that does nothing to help them,” said David Stolt, Chief Field Investigator for the Bureau.

For the entire press release, see State Regulators Order Foreclosure Rescue Companies to Cease Doing Business in Maine.

(1) The list of firms nailed by Maine regulators, which contains some of the "usual suspects," follows (with links to the corresponding cease & desist orders):

posted by Home Equity Theft Reporter at 4:09 AM