Ariz. company banned in Iowa

Nick Rees Jun. 8, 2012, 6:43am


DES MOINES, Iowa (Legal Newsline) - Iowa Attorney General Tom MIller announced on Thursday that an Arizona company has been barred from offering foreclosure consultant services in the state.

Burce Spurlock, the co-owner of the now-defunct Discount Mortgage Relief and Mortgage Relief LLC of Scottsdale, Ariz., is required to refrain from any form of foreclosure consultancy. A $40,000 penalty against Spurlock was suspended.

Miller alleged that Spurlock was in violation of Iowa's Consumer Fraud Act by demanding, charging and collecting money for foreclosure consulting services before completing all services.

"Unfortunately, we know that there are Iowans who paid thousands of dollars for so-called mortgage rescue services they didn't get at all," Miller said.

"What's also heartbreaking is that these Iowans who were already in deep financial trouble and needed every penny they could save could have gotten help for free through the Iowa Mortgage Help Hotline."

Spulock's $40,000 civil penalty is suspended provided that he complies with the court order. Additionally, Spurlock denied allegations that he violated Iowa's Consumer Fraud Act.

Following a court injunction against Discount Mortgage Relief by the Arizona attorney general under Arizona's Consumer Fraud Act, the company closed in 2010. The Arizona attorney general also filed a lawsuit that alleged that thousands of dollars were paid by consumers to the company for home loan modifications that were never received.

Similar civil law enforcement actions against the company and its principals are have been or are being pursued by state attorneys general from Arkansas, Georgia, Maryland, New Hampshire and Washington.

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