Exciting News Regarding Foreclosure Rescue Scams

As I mentioned in a previous post, I have someone close to me that recently became a victim of a foreclosure rescue scam.  This person filed complaints with the Alabama Attorney Generals Office and the Florida Attorney Generals Office.  This particular foreclosure rescue company is located in Jacksonville, Florida.  My friend was contacted several times by the Florida AG office regarding their complaint.  They were notified by them on Friday that they have filed a lawsuit against this particular company due to their complaint and others like them.  I am pasting the press release from the Florida AG’s office.  

 

Attorney General Bill McCollum News Release

April 3, 2009
Media Contact: Sandi Copes
Phone: (850) 245-0150

Attorney General Sues Jacksonville Company for Foreclosure Rescue Fraud

TALLAHASSEE, FL – Attorney General Bill McCollum today sued a Jacksonville company and its directors alleging the company is engaged in foreclosure rescue fraud. According to the lawsuit, National Foreclosure Counseling Services, Corp., operated by Raymond Paulk and Robert Dallavia, targeted homeowners facing foreclosure and charged up-front fees for loan modification services in violation of Florida law. The Attorney General also requested the Duval County Circuit Court issue an injunction against National Foreclosure Counseling Services requiring the company to immediately stop demanding up-front fees from customers before providing services.

An investigation conducted by members of the Attorney General’s Economic Crimes Division, working as part of the Attorney General’s Mortgage Fraud Task Force, determined National Foreclosure Counseling Services, Corp allegedly lured customers using mailings which implied the solicitations came from a government agency, claimed the consumers had been selected for special programs by “Government Insured Institutions,” and stated the mailings constituted a last attempt to assist the homeowners before foreclosure.

Before accepting a homeowner as a client, National Foreclosure Counseling Services Corp., would allegedly require the consumer to sign a “working agreement” which included an up-front “retainer fee” averaging $1,800, an up-front “processing fee” of $200, and an hourly fee of $125 for future services. The lawsuit further states that the company failed to perform the services following payment. National Foreclosure Counseling Services, Corp. offers services nationwide and has already been sued by the Attorneys General of Illinois and Minnesota.

The Jacksonville lawsuit, which has also requested consumer restitution, is one of several filed by the Attorney General since the Foreclosure Rescue Fraud Prevention Act became law on October 1, 2008. The law specifically addresses companies which claim they can save homes from foreclosure by negotiating or modifying the terms of the homeowners’ mortgages. Civil penalties for violating the law can be up to $10,000 per violation or $15,000 if the victim is a senior citizen or disabled individual. The Attorney General’s Office has received thousands of complaints about these companies and their services over the past several months.

Consumers who wish to file a complaint about the company may do so by filing an affidavit with the Attorney General’s Office. A form and instructions is available online at:
http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7QQSK5/$file/Affidavit.pdf

A copy of the lawsuit is available online at: http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7QQSKU/$file/Complaint.pdf

 

If you would like to file a complaint against this company, go to:

 http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7QQSK5/$file/Affidavit.pdf.  

 

To visit the Florida Attorney Generals Office website, please

go to http://myfloridalegal.com.    

 

 

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