Thursday, December 10, 2015

Illinois AG Files Civil Lawsuit Accusing Loan Modification Operator Of Ripping Off Homeowners Out Of Upfront Fees, Then Failing To Provide Promised Services

From the Office of the Illinois Attorney General:
  • Attorney General Lisa Madigan filed suit against a Cicero company and its owner for a mortgage rescue and consumer fraud scheme that illegally charged consumers approximately $20,000 in upfront fees that resulted in little, if any, help to stay in their homes.

    The Attorney General filed suit in Cook County Circuit Court against Carrey Services, Inc. and its president Reynaldo Rojas. The lawsuit seeks to shut down the business and obtain restitution for consumers.

    ***
    Madigan alleges the defendants advertised in Spanish-language newspapers and primarily targeted the Latino community with loan modification services. Madigan alleges the business owner met with consumers and made them sign various loan modification documents, but never provided the consumers with copies. In many instances, the documents were printed in English even though most consumers were Spanish-speaking.

    In addition, Madigan alleges the defendants charged upfront fees that exceeded the amount allowed under state law. Then, after failing to do any work, the defendants refused to provide refunds and, in many cases, were unresponsive to mediation letters from the Attorney General's Office.