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Indiana AG Files Court Injunction to Stop Deceptive Foreclosure Consultants

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By : Cassiano Travareli    99 or more times read
In Indiana, the Attorney General has decided to file a court injunction against foreclosure rescue company National Foreclosure Consultants as response to the growing number of complaints that the state has received. It would seem that the company’s foreclosure consultants are engaged in activities that violate several state laws that aim to protect consumers.

These laws include the Deceptive Consumer Sales Act, Mortgage Rescue Protection Fraud Act and the Credit Services Organization Act.

Based on its investigation, the Office of the Attorney General discovered how a foreclosure consultant convinced a distressed homeowner to pay a certain amount in upfront fees to stop foreclosure immediately. After the homeowner agreed to do so, a contract was signed. The said contract did not contain statements which are required by Indiana law to protect consumer rights.

When the foreclosure proceeded, the troubled homeowner decided to terminate the contract and ask the foreclosure consultant for a refund considering that the latter was not able to fulfill the services promised. Unfortunately, the foreclosure consultant did not see this as a valid reason and refused to refund the upfront fee.

For the state, this is a clear violation of consumer rights. Aside from asking the court for an injunction, it also seeks penalties amounting to $5,500 per violation as well as refund of the upfront fee.

It is certainly disheartening to know that there are still many individuals who are taking advantage of these unfortunate homeowners. Nationwide, foreclosure – related scams are on the rise as the problems in the housing and credit industries deepen.

Government officials and housing advocates have repeatedly warned troubled borrowers to stay away from suspicious individuals, offering them quick and simple answers to their mortgage problems. But due to desperation and lack of knowledge, many homeowners still fall victim to these fraudulent activities.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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