Ohio AG sues Calif. loan modification service

By Bryan Cohen | Feb 21, 2014

DELAWARE, Ohio (Legal Newsline) - Ohio Attorney General Mike DeWine announced a lawsuit on Wednesday against a Newport Beach, Calif.-based loan modification service for allegedly failing to deliver and failing to provide refunds.

Home Remedy Center and Pamela Gressier, the company's owner, used mail and online ads to offer its home loan modification services to consumers. The company said it would help consumers avoid foreclosure by working with lenders to negotiate a home loan modification or otherwise adjust the debt. After Home Remedy Center accepted fees ranging from $3,500 to $5,000, the company allegedly did little to no work to help consumers and failed to provide them with refunds.

"Consumers paid thousands of dollars thinking they would get help adjusting their mortgage loans," DeWine said. "Instead they received essentially nothing in return and lost the money they paid to the business. We won't stand by when a business targets consumers, takes their money, and provides no real help."

DeWine's office is aware of nine complaints against Home Remedy Center, including two cases in Delaware County. DeWine's lawsuit alleges the defendants violated Ohio's Consumer Sales Practices Act and Debt Adjusters Act. The suit seeks injunctive relief, consumer restitution and civil penalties.

It is illegal in the state of Ohio for consumers to collect fees for mortgage assistance relief services until consumers receive and accept a loan modification offer from their lenders.

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