More than 20,000 checks were sent out by the Colorado Attorney General's Office for homeowners who were charged inflated foreclosure costs by the law firm Aronowitz & Mecklenburg, said state Attorney General Cynthia Coffman.
Coffman said Monday the contracted third-party administrator hired by her office sent out the checks totaling $7.7 million to the homeowners. The foreclosure law firm worked with the homeowners in order to cure, reinstate or enter into a loan modification in order to stop a foreclosure on their property.
Coffman's office sued Aronowitz & Mecklenburg in 2014, alleging the firm and its principals “illegally inflated certain foreclosure-related costs.” Part of the settlement included making funds available to pay partial restitution to the homeowners who were affected by the overcharging.
“Consumers trying to resolve a foreclosure should not have had to shoulder the additional burden of illegally-inflated costs,” Coffman said. “We are very glad we can return some of that money to homeowners.”
Colorado consumers who have questions about the settlement, or if they've received or are eligible to receive restitution funds, should call the class action administrator at 844-533-9506.