CROWN POINT, Ind. (Legal Newsline) - Indiana Attorney General Greg Zoeller filed a lawsuit against a New Jersey-based foreclosure consultant Thursday who allegedly charged thousands in upfront fees without providing services or refunds.
Liberty Credit Law and Bruce Bronson, the company's owner, allegedly contracted illegally with at least two Indiana homeowners to perform home loan modifications, requiring upfront payments as part of the process. One Lake County victim and one Jasper County victim allegedly paid thousands in upfront fees without receiving the promised services or refunds.
"This case is particularly egregious in that Liberty Credit Law collected high upfront fees from both homeowners in violation of our consumer protection statutes," Zoeller said. "Unfortunately, desperate homeowners are enticed by promises of lower monthly payments or a guaranteed refund by those claiming to be foreclosure consultants. In reality, these companies aren't providing any service that the homeowner can't do themselves by reaching out to their mortgage servicer."
Liberty Credit Law also allegedly failed to register a required $25,000 surety bond with Zoeller's office.
Zoeller's lawsuit alleges that Liberty Credit Law and Bronson violated the Deceptive Consumer Sales Act, the Home Loan Practices Act, the Mortgage Rescue Protection Act and the Credit Services Organization Act. The suit seeks an injunction against the company, civil penalties, investigative costs and restitution for the victims.