RICHMOND, Va. (Legal Newsline) - Virginia Attorney General Ken Cuccinelli announced settlements Tuesday with two affiliated mortgage loan modification companies that allegedly charged illegal advance fees for foreclosure rescue services which they failed to deliver.
The Virginia Beach-based Rysnglo Financial Management LLC and the Los Angeles-based Mae Global Enterprises LLC allegedly violated the Virginia Foreclosure Rescue law by charging and receiving large advance fees from consumers for foreclosure prevention services. The companies allegedly charged fees between $6,000 and $80,000 for mortgage loan modification services.
Both companies also allegedly violated the Virginia Consumer Protection Act by failing to follow through on their promises to provide consumers with avoidance services.
"I am unaware of a single instance where consumers received promised services from the Rysnglo or Mae Global," Cuccinelli said. "My office is committed to pursuing those who prey on Virginia citizens experiencing financial difficulties."
Under the terms of the settlement, Rysnglo and Mae Global must pay $248,000 in restitution, $85,000 in civil penalties and $25,000 for reimbursement of attorney fees and costs. Rysnglo and Mae Global also agreed to a permanent injunction prohibiting them from violating the VCPA and the Foreclosure Rescue law and a permanent injunction prohibiting them from engaging in any violations of the Consumer Financial Protection Bureau's Mortgage Assistance Relief Services Rule.
The settlements took the form of two separate assurances of voluntary compliance.