Sunday, September 06, 2015

Maryland Attorney Faces Non-Criminal Accusations Of Fleecing Homeowners In Foreclosure By Peddling Crappy Loan Modification Services

From the Office of the Maryland Attorney General:
  • Attorney General Brian E. Frosh announced [] that the Consumer Protection Division has filed charges against the Towson-based Law Office of Daniel M. Radebaugh, LLC and its founder Daniel M. Radebaugh, for allegedly charging at least 400 consumers illegal advance fees and not providing promised refunds after failing to negotiate successful loan modifications.

    The administrative charges [ie. non-criminal charges] allege violations of the Maryland Credit Services Businesses Act and the Maryland Consumer Protection Act between 2010 and 2013. According to the Division, Mr. Radebaugh made false and misleading representations to consumers. The firm claimed it could obtain loan modifications, required consumers to pay prohibited up-front fees of up to $2,495 when nonprofit organizations offer the same services for free, and guaranteed refunds if they were not successful in securing loan modifications.

    In addition to requiring that restitution be paid to all consumers harmed by these practices, the charges also seek to impose a civil penalty of up to $1,000 on Mr. Radebaugh and his firm for each of the alleged violations of the Consumer Protection Act.

    A hearing is scheduled for October 1 at the Office of Administrative Hearings. Consumers with complaints against Mr. Radebaugh or his law office should call the Consumer Protection Division at 410-576-6569 or write to 200 St. Paul Place, 16th Floor, Baltimore, MD 21202.
Source: Attorney General Frosh Sues Provider of Loan Modification Services (Towson firm allegedly took thousands in advance payments, but didn't deliver promised services or refunds to consumers).

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