PHOENIX (Legal Newsline) - Arizona Attorney General Terry Goddard announced on Monday that he has obtained a $581,533 default judgment against a loan modification company that allegedly violated the Arizona Consumer Fraud Act.
A lawsuit Goddard filed earlier this year alleged that Asset Creation LLC and owner Marvin Williamson engaged in deceptive business practices by advertising loan modification services throughout the state using numerous misrepresentations.
The ads, which were primarily marketed to the Spanish-speaking public, allegedly provided false information about specific results that the company could obtain for anyone using its services.
It is estimated that over 2,500 consumers used Asset Creation for loan modification services in the past two years.
The suit alleged that the company promised a money-back guarantee, but refunds were hardly ever given and were within the sole discretion of Asset Creation. A number of consumers who paid fees ranging from $1,680 to $3,430 allegedly lost their homes because the company refused to help and failed to refund their money.
Goddard further alleged that the company falsely implied that it had been in business since 2003, even though it had only been operating since 2008.
Under terms of the judgment, Asset Creation and Marvin Williamson are required to pay consumer restitution in the amount of $352,731 and pay an additional $208,000 in civil penalties. They must also pay the state $20,802 for costs associated with litigation.
Asset Creation and Marvin Williamson are also banned from engaging in any activities related to obtaining or modifying mortgage loans in the state.