Many homeowners facing foreclosure who are frustrated with their loan servicers turn to for-profit foreclosure consultants whose advertisements often promise any home can be saved from foreclosure and their services are 100% guaranteed. On October 21, 2010, the OAG filed ten lawsuits against companies making such claims, calling these assertions false and illegal.
The lawsuits were filed in nine different Indiana counties including Shelby, Marion, Lake, Knox, Johnson, Elkhart, Clinton, Clay and Allen. The coordinated filing was done in an effort to raise awareness of the pitfalls of hiring for-profit foreclosure rescue companies.
The Federal Trade Commission announced a new rule on October 20, 2010, prohibiting debt relief organizations from collecting up-front or advance fees for services yet to be rendered. The rule took effect on October 27, 2010, and will be an additional enforcement measure the OAG may use to stop unlawful foreclosure consultants.
To date in 2010, the Indiana Attorney General’s Office has filed lawsuits against or reached settlements with
27 foreclosure consultants located in states around the nation.
Anyone with knowledge of an individual or entity engaging in illegal foreclosure consulting activities is encouraged to file a Consumer Complaint Form, available on http://www.indianaconsumer.com/, with www.IndianaConsumer.com, with the OAG.
Indianapolis Real Estate
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