Indiana AG Tags Another Loan Mod Outfit w/ Civil Suit; Alleges Retired Cop Seeking To Lower Payments Was Screwed Out Of $1K By Out-Of-State Operation

In Corydon, Indiana, the Louisville Courier Journal reports:

• Larry Green thought he found the solution to his mortgage problem when he heard a radio ad. Green, a retired state trooper who has lived in his Harrison County home since 1983, wanted to lower his 9 percent interest rate to something more manageable. In April 2009, he heard the ad from California-based PFS Financial Corp. offering solutions for homeowners facing foreclosure. Although Green wasn't worried about foreclosure, he contacted the company and paid $1,000 up front, hoping they could help find a lower rate. "They seemed legit, but they weren't," he said.

• On Tuesday, Indiana Attorney General Greg Zoeller filed a lawsuit on behalf of Green against PFS Financial for alleged violations of the Credit Services Organizations Act, the Mortgage Rescue Protection Fraud Act, the Deceptive Consumer Sales Act, and for lacking proper certification from the Indiana secretary of state.

• Zoeller, who announced the lawsuit at a news conference in Corydon, said the company also failed to file a $25,000 surety bond that serves as insurance for clients when it doesn't perform services or provide a refund, something that Green has been seeking.

For more, see Indiana AG sues California mortgage consultant.