Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Tuesday, June 19, 2012
Illinois AG Tags Defunct Home Improvement Company's Owners w/ Suit Alleging They Pocketed Customer Cash On Orders That They Knew Would Go Unfulfilled
From the Office of the Illinois Attorney General:
Attorney General Lisa Madigan [] filed suit against a defunct south suburban home improvement supply company for failing to refund Cook County homeowners more than $90,000 in down payments for orders that were never fulfilled after the company went out of business.
The lawsuit was filed in Cook County Circuit Court against Family Security Doors & Windows Inc., [...] in Alsip. The suit names company principals Robert E. Starr, of Worth, his brother Michael Starr, of Chicago, Thomas J. Abbott, of Chicago, and Gordon Jackson, of Oak Forest.
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Madigan alleges Family Security solicited and accepted down payments from consumers for new business throughout the summer of 2011, even though previous orders already faced lengthy delivery and installation delays as the company prepared to shut down. The lawsuit alleges that beginning in at least April 2011 the company was preparing to liquidate as it struggled to meet debt and operating costs, yet it continued to accept new business.
When the business finally closed in September 2011, Family Security had accepted down payments from more than 150 consumers totaling more than $90,000 that it would never fulfill. Customers who were able to reach company representatives after the closure were told services would not be provided nor would they be refunded for their down payments, which totaled as much as $1,000 per person.
“While the company’s operators were actively preparing to shut down, they continued to take customers’ down payments even though it was evident that the company couldn’t fulfill the orders already on its books,” Madigan said. “Now hundreds of consumers who’d been waiting months for their orders are out thousands of dollars for nothing in return.”
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The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
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MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
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