Koster sues debt collection firm

Ashley Stinnett Aug. 15, 2009, 4:38pm

Chris Koster (D)

JEFFERSON CITY, Mo. (Legal Newsline) ' Missouri Attorney General Chris Koster on Thursday filed a lawsuit against a Kansas City debt collection company over allegations of mortgage fraud.

The lawsuit alleges Premiere Credit Services and its owners, Michael and Angela Eads, promised homeowners facing defaults lower interest payments, as well as consumer credit history repair.

The Eads allegedly charged consumers upfront payments, which is against state law, Koster said.

The company and its owners allegedly tricked consumers by using false advertising that appeared to come from the federal government stating the homeowner would be eligible for mortgage modification under the Government Economic Stimulus Act of 2008.

"The Eads and Premier Credit knowingly deceived Missourians who were facing financial difficulties and even foreclosure, leaving them in worse financial shape," Koster said.

The lawsuit seeks to award restitution to consumers, impose penalties and issue an injunction prohibiting PCS from violating state law in the future.

Since April, Koster has filed suit against six other companies over similar allegations. His office currently has more than a dozen mortgage fraud investigations pending.

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