Cuomo Goes After ‘Foreclosure Rescue’ Companies

Posted by Orb Staff on June 24, 2010 No Comments
Categories : Mortgage Servicing

fice of New York Attorney General Andrew M. Cuomo is sending over 180 cease-and-desist letters to mortgage rescue companies with customers in New York, warning them to immediately end all misleading and illegal conduct. Cuomo says his ongoing investigation into the mortgage rescue industry has revealed that many companies routinely collect illegal up-front fees from homeowners on the brink of foreclosure and then fail to help them lower their mortgage payments or save their home as promised. Cuomo's cease-and-desist letters – which are going to 182 companies – warn mortgage rescue companies to end any illegal and misleading practices, including the following: [list] Charging up-front fees for consulting services;*Failing to enter into written contracts with homeowners, in the language the homeowners use, that fully disclose the exact nature of, and fees for, the services to be provided;*Failing to allow homeowners to cancel their contract, without any penalty, within five business days after signing and failing to provide homeowners with notice of this right in the contract;*Using any deceptive and misleading advertising practices; and*Using any advertisements designed to give consumers the false impression that a company is affiliated with the government or a government-sponsored program.[/list] A copy of the attorney general's cease-and-desist letter can be found at [link=http://www.nyprotectyourhome.com]www.nyprotectyourhome.com[/link]. SOURCE: [link=http://www.ag.ny.gov/media_center/2010/june/june23a_10.html]Office of New York Attorney General Andrew Cuomo

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