Feds File Civil Suit In Central Florida Against Alleged Upfront Fee Loan Modification Racket; "Attorney Renting" Among Allegations

In Tampa, Florida, Courthouse News Service reports:

• Mortgage and "foreclosure relief" companies backed by a law firm took thousands of dollars from customers who ended up in worse shape than they started, the FTC says. It sued the Crowder Law Group dba Legal Support Services, 11 individuals, and Washington Data Resources, and Optimum Business Solutions dba Attorney Finance Services.(1) The Federal Trade Commission says the defendants steered their victims away from free programs offered by lenders and suckered them into spending thousands of dollars on programs with cheerful names such as "Fresh Start Program" or "Hope4Homeowners."

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• The agency says Washington Data Resources and Optimum Business Solutions contracted with attorneys in several states to place calls to consumers to explain the process. Other than the telephone call, the attorneys have little if any involvement with the consumers and are paid for each consumer they agree to accept as a client, the FTC says. The defendants repeatedly fail to obtain the promised loan modifications.

For more, see FTC Says Law Group Helped in Debt Scam.

For the lawsuit, see FTC v. Washington Data Resources, Inc., et al.

(1) Washington Data Resources is a Florida corporation; Optimum Business Solutions is a Nevada LLC dba Attorney Finance Services; Crowder Law Group fka Jackson, Crowder & Associates dba Legal Support Services is a Florida corporation. Also sued, and their affiliations, are Richard A. Bishop (Optimum), Brent McDaniel (Washington Data), Tyna Caldwell (Crowder Law Group), Douglas A. Crowder (Crowder Law Group), Bruce Meltzer (Crowder Law Group), and Kathleen Lewis (Optimum).