Thursday, May 5, 2011

Florida AG sues Foreclosure Rescue Companies

The office of Florida Attorney General Pam Bondi has filed a lawsuit against three South Florida companies that allegedly charged up-front fees for loan modification services to homeowners facing foreclosure.

Home Owner Protection Economics Inc., DC Financial Group, Deleverage America Inc. and owners Dennis Fischer and Christopher S. Godfrey purportedly collected thousands of dollars monthly in up-front fees for modification services that were never provided. As a result of Bondi's lawsuit, the Palm Beach County Circuit Court has ordered that the defendants' assets be frozen and that they be forbidden from operating until further order of the court.

An investigation conducted by the attorney general’s economic crimes division indicated that these companies, located in Delray Beach, were allegedly charging up-front fees ranging from $495 to $2,000 for services that were never rendered. Allegedly, the defendants falsely represented to homeowners that they would work with lenders to reduce the homeowners’ debt and prevent foreclosure.

The companies were allegedly soliciting hundreds of homeowners nationwide via telemarketing, direct mail, e-mail, and Internet, print and TV advertising.