N.C. AG wants shutdown of loan modification company

Bryan Cohen May 17, 2011, 1:56am


RALEIGH, N.C. (Legal Newsline) - North Carolina Attorney General Roy Cooper announced on Tuesday that a Winston-Salem foreclosure rescue operation has been temporarily barred from offering foreclosure and loan modification services.

Cooper alleged that Edward "Eddie" Phillip Long, Jr., doing business as Credit Enhancement Services, illegally charged an advanced fee of $500 to $1000 for foreclosure assistance or loan modifications and that Long did little or nothing to stop homeowners from losing their homes. In addition, Cooper alleged that Long ignored customer requests for refunds.

"This kind of scheme robs struggling homeowners of valuable time and hard-earned money that could be used toward legitimate help that could put them back on their feet again," Cooper said. "My office will continue to target outfits that violate the law by charging an upfront fee for their service."

Long has been temporarily barred from offering foreclosure and loan modification services and from charging advance fees for credit repair and credit score improvement services. Cooper is seeking to permanently shut down Long's business, as well as civil penalties and consumer refunds.

Cooper alleged that Long advertised his foreclosure assistance and credit repair services through in-person presentations and seminars, appearances on local radio broadcasts, through word-of-mouth. and online. Long also allegedly claimed to have extensive experience in the banking industry. Long's claims of experience, including that he was a professor of finance at North Carolina A&T University, were allegedly both false.

Long told customers he had a "90 percent success rate" and would refund all of their money if he was unable to save their home. Six consumers filed complaints about Long and his business to Cooper's Consumer Protection Division.

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