In the years since the 2007-2009 financial crisis, many companies have been founded with the stated goal of helping homeowners who are behind on their mortgage payments. One kind of company which offered relief to distressed homeowners focused on so-called loan modifications, which was a negotiation with the mortgage company regarding changing the terms of the loan and payments. Now, Indiana Attorney General Greg Zoeller is taking legal action against 3 such companies which functioned in the state, claiming that they did not follow the law.
Zoeller is taking three companies, all from out of state, to task for not having been bonded. According to Indiana state law all companies which provide credit services must have a $25,000 bond. As the accused companies did not have a bond on file in Indiana, Attorney General Zoeller has labeled them “scams.” Zoeller’s officer has also alleged that the companies violated various laws which govern the way that credit and financial services companies may interact with potential customers, including the Credit Services Organization Act, and the Deceptive Consumer Sales Act.
This is not the first time that Zoeller’s office has taken a foreclosure consultancy to court. In fact, his office has filed 196 such lawsuits against foreclosure consultancies in the past. The lawsuits seek to have the companies banned from doing business in Indiana, as well as repayment for the victims, civil penalties, and reimbursement for investigative costs.
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