Wednesday, April 06, 2016

Ohio AG: Out-Of-State Attorney w/out Ohio Law License Ripped Off Homeowners By Peddling Legal Services Promising Loan Modification Assistance, Then Failing To Deliver Services Or Requested Refunds

From the Office of the Ohio Attorney General:
  • Ohio Attorney General Mike DeWine [] announced a lawsuit against a Pennsylvania attorney accused of taking thousands of dollars from Ohio consumers while falsely promising to help save their homes.

    The lawsuit accuses Pittsburgh-based Michael A. Rabel & Associates LLC and Michael A. Rabel, individually, of violating Ohio’s Consumer Sales Practices Act and Debt Adjuster’s Act by failing to deliver promised loan modification services, making misrepresentations, and charging excessive fees.

    “Consumers assumed they were working with a law firm that was going to help them,” Attorney General DeWine said. “Instead we found the opposite to be true.”

    According to the lawsuit, Rabel contacted Ohio consumers to offer loan modification services, claiming he could help consumers avoid foreclosure. He said he would provide “legal services” and charged “attorney fees” even though he was never licensed to practice law in Ohio and none of his employees were Ohio-licensed attorneys.

    Consumers paid upfront fees ranging from about $1,000 to $3,000 but did not receive loan modifications and did not receive refunds. Three Ohio consumers filed complaints against Rabel reporting total losses of $6,500. Additional consumers may be affected.