Ind. AG files lawsuits against home loan modification companies

By Bryan Cohen | May 16, 2012


INDIANAPOLIS (Legal Newsline) - Indiana Attorney General Greg Zoeller announced five lawsuits against out-of-state home loan modification companies that allegedly violated Indiana's consumer protection laws by taking more than $11,300 from six Indiana customers.

The defendants are: Georgia-based Global Equity Solutions, also known as Peachtree Consultants; the California-based Nationwide Mediation Services and Provident Law Group Inc.; the Florida-based Integrity Mortgage and Credit Solutions; and the Ohio-based Freedom Equity Savings. The businesses allegedly promised to reduce interest rates or monthly payments for homeowners in exchange for a fee paid upfront.

"Homeowners who may be facing foreclosure or who are just beginning to get behind on payments should seek out legitimate help and not succumb to unsolicited and too good to be true offers," Zoeller said. "As long as companies like these continue to operate in our state the attorney general's office will aggressively pursue and prosecute them to the fullest extent of the law."

The companies allegedly took upfront money from consumers living in Union, Parke, Marion, Lake and Hamilton counties. The consumers made payments that ranged from $791 to $3,000 before realizing that little to no progress had been made regarding their home loans, it is alleged.

Zoeller's office alleges that the defendants violated the Deceptive Consumer Sales Act, the Home Loan Practices Act, the Mortgage Rescue Protection Fraud Act and the Credit Services Organization Act. The defendants also failed to register $25,000 surety bonds with Zoeller's office to conduct business as Indiana foreclosure consultants, he says.

The lawsuits seek injunctions, restitution and civil penalties against the companies.

Zoeller's office has filed 110 lawsuits against foreclosure consultant companies throughout the state since 2006.

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