MADISON, Wis. (Legal Newsline) - Wisconsin Attorney General J.B. Van Hollen obtained a default judgment of more than $111,000 against a loan auditor over allegations that it violated state consumer protection laws, his office announced on Friday.
The Calif.-based Relief Law Center, Inc., doing business as USA Loan Auditors, was charged with deceiving consumers with its mail solicitations.
The misleading solicitations made it appear as if the company was a loan auditor looking into the homeowner's lender, but, in reality, it was soliciting for loan modification services, it is alleged.
"Homeowners should beware of scammers like these, who charge up-front fees for purported services they never intend to deliver," Van Hollen said.
"In Wisconsin it is illegal for anyone to charge up-front fees for foreclosure rescue or loan modification services. People who need assistance should contact their lenders directly or go to HUD-approved housing counselors who will work with homeowners for free."
Van Hollen sought the judgment after USA Loan Auditors failed to answer a complaint filed against them.
Under terms of the judgment, the company is enjoined from engaging in any similar violations in the future, and must pay $118,861 in forfeitures, penalties and costs related to litigation in the matter.