Houston Firm Accused Of Being A Foreclosure Scam

Posted by Orb Staff on May 18, 2009 No Comments
Categories : Mortgage Servicing

is County district judge froze several Houston firms' assets after Texas Attorney General Greg Abbott [link=http://www.oag.state.tx.us/newspubs/releases/2009/051309excel_pop.pdf]c[u]harged the companies[/u][/link] with running foreclosure rescue scams. According to the state's enforcement action, the defendants fraudulently charged their customers for worthless rescue, debt counseling and credit repair services. District Judge Patricia J. Kerrigan also granted the Abbott's request for a temporary restraining order. The state's enforcement action names Excel Loss Mitigation Inc., United Servicing LLC, Bell Investments & Developments LLC and key directors Frank Bell, David Bell and David Espy as defendants. All of the defendants were also charged with failing to post a bond with the Texas secretary of state, which is required to legally conduct business in the state of Texas. Excel, which was renamed United Servicing after an influx of customer complaints, proactively contacted hundreds of homeowners who were struggling to pay their mortgages. State investigators discovered that the companies employed telemarketers who falsely promised that their services would allow homeowners to avoid foreclosure, the attorney general's office says. According to investigators, the defendants made no efforts to negotiate with lenders on customers' behalf, and client files were in a state of disarray and not stored in a manner that was conducive to a functional enterprise. Abbott's office is seeking civil penalties of up to $20,000 for each violation of the Texas Deceptive Trade Practices Act, as well as restitution for harmed customers. In addition, he seeks penalties for numerous violations of the Texas Telephone Solicitation Act and the state's Finance Code. SOURCE: Office of Texas Attorney General Greg

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