| LAW AND ASSOCIATES LLC, CLEARWATER FLORIDA |
| ILLINOIS ATTORNEY GENERAL SUES 14th COMPANY FOR MORTGAGE RESCUE FRAUD |
| 11th of Aug, 2011 by dmcnulty |
Madigan Alleges Florida Company Takes Advantage of Homeowners
on the Verge of Losing their Homes to Foreclosure
Chicago Illinois Attorney General Lisa Madigan today continued her aggressive legal
fight against mortgage fraud by filing a lawsuit against a Clearwater, Fla., company
which operates a rescue fraud scheme that preys on vulnerable homeowners on the verge
of foreclosure. This is the 14th lawsuit Attorney General Madigan has brought against
mortgage rescue fraud companies.
Madigan filed suit in Cook County against Law & Associates LLC, and its managing
member, Thomas E. Law, II, alleging the defendants violated the Mortgage Rescue Fraud
Act and the Consumer Fraud and Deceptive Business Practices Act by falsely promising
to help consumers save their homes after falling behind on their mortgage payments.
According to the complaint, the defendants charged consumers up to $1,900 and
promised to provide mortgage foreclosure rescue services that they either failed to
perform the services or only performed ineffective services. Attorney General
Madigans Consumer Fraud Bureau has directly received one complaint relating to the
defendant and 68 complaints referred from the Better Business Bureau.
In the midst of the mortgage foreclosure crisis, unscrupulous people are using so-
called mortgage rescue scams to prey on vulnerable homeowners, Attorney General
Madigan said. I am continuing to take aggressive action against these illegal
schemes to send the message that their deceptive and fraudulent practices are not
welcome in Illinois.
Madigans lawsuit alleges Law & Associates market mortgage rescue services to at-risk
homeowners, encouraging them to call a toll-free number where they are told there is
an upfront fee of $1,990 for mortgage rescue services. Consumers who indicate they
cannot afford the charge are offered a reduced rate of $1,800 on a payment plan that
must be paid in full prior to them receiving any mortgage rescue services. The
defendants also promise desperate homeowners that the service fee is refundable if
the company is not able to successfully negotiate an agreement with the homeowners
mortgage lenders or provide a viable strategy to avoid foreclosure. The lawsuit
alleges the defendants fail to provide the services promised and fail to refund the
service fee.
Madigans suit asks the court to prohibit the defendants from engaging in mortgage
rescue practices. The suit also seeks a civil penalty of $50,000, additional
penalties of $50,000 for every violation found to have been committed with the intent
to defraud, and a $10,000 penalty for each violation committed against a person 65
years or older. Further, the suit asks the court to rescind the contracts signed as a
result of these deceptive practices and offer full restitution to affected consumers.
Finally, Madigans suit asks the court to order the defendants to pay all costs
associated with the investigation and prosecution of the lawsuit.
The lawsuit is part of Madigans ongoing work to curtail the foreclosure crisis and
help Illinois families stay in their homes. Madigans office has sued 14 mortgage
rescue companies to stop deceptive practices and successfully participated in three
multi-state settlements against major subprime lenders: Household Finance, Ameriquest
and First Alliance Mortgage Company. To date, Madigans office has obtained nearly
$900 million in enforcement actions against these lenders.
Last year, Madigan announced a comprehensive strategy to address the looming home
foreclosure crisis in Illinois. As part of this effort, Madigans office hosted a
statewide home ownership preservation summit in July 2007, bringing together more
than 100 participants from the mortgage lending industry, consumer advocacy groups
and government agencies to identify problems and look for solutions to mortgage
foreclosures.
On the legislative front, Madigan worked to pass the High Risk Home Loan Act of 2003,
and drafted the Mortgage Rescue Fraud Act of 2006, which was designed to deter scam
artists from preying on vulnerable homeowners on the verge of foreclosure. The
Attorney General also initiated and drafted the Illinois Homeownership Protection
Act, a new law that tightens controls on brokers and lenders to prevent consumers
from being unwittingly locked into questionable loan terms.
Madigan also has sued mortgage giant Countrywide Home Loans, Inc., for deceptive and
fraudulent loan origination practices. Additionally, she has issued fair lending
subpoenas to Countrywide and Wells Fargo Financial Illinois, Inc., to determine
whether these companies steered African American and Latino borrowers into higher
cost or otherwise inappropriate home loans in violation of fair lending and civil
rights laws.
Madigan urged Illinois homeowners who are facing foreclosure to immediately contact
their mortgage company or a HUD-certified housing counselor for assistance. To get a
referral to a certified housing counselor or to learn more about the steps to take to
avoid foreclosure, homeowners can call Madigans Homeowners Referral Helpline at
1-866-544-7151 from 8 a.m. to 5 p.m. Monday through Friday.
Homeowners also can visit Attorney General Madigans Web site at
www.IllinoisAttorneyGeneral.gov, to access the Illinois Mortgage Lending Guide, a
resource manual containing step-by-step instructions for those struggling to make
their loan payments and a list of HUD-certified counseling agencies that offer
default counseling services. Homeowners who do not have easy access to the Internet
should call the Attorney Generals Referral Helpline to request a copy of the guide
by mail.
Assistant Attorney General Kevin Rouse is handling the case for Madigans Consumer
Fraud Bureau. |
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Florida Debt Settlement, Inc.
Aesir Holdings Inc.TAMPA FLORIDA |
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Florida Debt Settlement, Inc.TAMPA FLORIDA
Aesir Holdings Inc.TAMPA FLORIDA
Thomas E Law II
1601 Souvenir Dr
Clearwater, FL 33755-1638
727-424-9692 CELL
727-442-6216 |
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| Debt Settlement Law Group PA |
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