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LEGAL NEWSLINE

Thursday, March 28, 2024

Va. AG worried scams resulting from $25B settlement

Cuccinelli

RICHMOND, Va. (Legal Newsline) - Virginia Attorney General Ken Cuccinelli warned consumers on Thursday to be wary of scam e-mails or phone calls related to a recent multistate foreclosure services settlement.

There have been numerous recent reports of Virginians who have received scam phone calls where the caller claims to have a list of citizens who are eligible for money from a recent $25 billion joint federal-state settlement with the nation's five largest mortgage servicers. The caller requests the bank account number of the consumer and says that he will deposit the settlement money directly into the consumer's account. The call is a part of a scam.

Mortgage borrowers should directly contact their mortgage services to obtain additional information about specific loan modification programs and whether they qualify under the terms of the settlement.

"I cannot stress this enough: Never give out your bank account information - or any personal information for that matter - to someone who calls you," Cuccinelli said.

"Instead, call a known number for your financial institution, so you are sure you are reaching a legitimate contact. We have provided settlement information on our web site, ag.virginia.gov, including phone numbers consumers can call to determine their eligibility for settlement programs."

The proposed settlement, agreed to on Feb. 9, would give Virginia an approximately $480 million share of settlement benefits from the $25 billion multi-state agreement. The agreement was made with Ally Financial/GMC, Citigroup, Wells Fargo, J.P. Morgan Chase and Bank of America to resolve allegations of foreclosure abuses and fraud.

It is not known if the scammers are posing as a third-party company claiming to work with the settlement or as bank associates.

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