John Suthers (R)
DENVER, Colo. (Legal Newsline) - In an effort to continue combating deceptive mortgage advertising, Colorado Attorney General John Suthers said Friday that his office, in conjunction with the Florida AG's office, has reached an agreement to prevent an Englewood-based brokerage firm from engaging in deceptive trade practices.
Assurity Financial Services, LLC were apparently contacting consumers with direct mailings designed to look like they were from a government agency or the borrower's lender, violating the Colorado Consumer Protection Act and the Florida Deceptive and Unfair Trade Practices Act.
The company allegedly sent out hundreds of thousands of mailings that appeared to be materials from the U.S. Department of Housing and Urban Development, the U.S. Department of Veterans Affairs or other governmental entities.
They also sent mailers made to appear as though there were from the homeowner's lender or implied that the homeowner was delinquent on their mortgage when, in fact, the homeowner was not. When consumers used the phone number listed on the mailers, they were directed to operators working for Assurity Financial Services who were trying to solicit business.
Under the assurance of voluntary compliance, Assurity Financial Services has agreed not to engage in any false or deceptive trade practices and will be required to clearly label each mailer as "a solicitation for a home loan." Also as part of the agreement, the company will pay $100,000 each to Colorado and Florida to reimburse the cost of their investigations.