Ohio Attorney General Richard Cordray is suing three companies that bill themselves as foreclosure rescue firms, claiming they took money from struggling homeowners in exchange for pledged foreclosure assistance but failed to deliver.
Cordray’s office said Thursday that it filed lawsuits against 21st Century Legal Services Inc., Foreclosure Home Assistance LLC and Michael Brotherton, who does business as Financial Emergency Inc. in the Dayton area. The state is looking to shut down the companies’ operations in Ohio. The suit against 21st Century Legal Services alleges it promised to help homeowners restructure loans for a fee of between $1,500 and $2,600. The company, Cordray’s office said, told customers to stop making payments on their home loans with the expectation that the firm would take care of the rest.
The state outlines similar claims against the other two firms being sued. Cordray’s office said it has issued 23 cease-and-desist notices to 21st Century and Cleveland-based Foreclosure Home Assistance since May. It’s charging each company with a violation of state consumer law and the Debt Adjusters Act, seeking reimbursement for customers and looking to levy a $25,000 penalty for each violation of state law.
http://www.bizjournals.com/cincinnati/stories/2009/06/22/daily58.html
Mon, Jun 29, 2009
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