CFPB & FLORIDA AG OBTAIN $27.7 M JUDGMENT AGAINST FORECLOSURE RELIEF SCAM COMPANIES

For years companies, including law firms, have been preying on naive homeowners alleging to have the “secret pill” to save their home.  These thieves promise to save the home by “making” the lender work with the homeowner.  In most cases the con artists are in the business for the sole purpose of stealing the homeowner’s hard earned money, or, worse yet, their home.
One by one these unscrupulous parties are being brought to justice.  For example: here is a posting from the Consumer Financial Protection Bureau and the State of Florida: they were “granted a final judgment against the Hoffman Law Group and corporate affiliates accused of using deceptive marketing practices and scamming distressed homeowners into paying illegal advance fees. Working together, five companies tricked consumers into paying millions of dollars in illegal upfront fees to join frivolous lawsuits that the companies falsely claimed would pressure banks to modify their loans or provide foreclosure relief. The court found the corporate defendants liable for $11,730,579 – the full amount of illegal fees paid by consumers – and ordered them to pay a $10 million civil penalty, in addition to penalties to the State of Florida.”
“These companies preyed on vulnerable consumers who were trying to save their homes from foreclosure,” said CFPB Director Richard Cordray. “The false promises made by these companies lured struggling homeowners into scams that led to greater financial hardship. We are working to protect consumers from illegal predatory practices by holding bad actors accountable for their actions.”
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