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Friday, April 26, 2024

Mo. AG files lawsuit against loan modification company

Koster

JEFFERSON CITY, Mo. (Legal Newsline) - Missouri Attorney General Chris Koster filed a lawsuit on Wednesday against a Florida resident and his inactive Florida company for allegedly engaging in unfair and illegal business practices.

James Ray III and his inactive company Ameristar Foreclosure Solutions LLC, offered mortgage loan modification services to consumers in Missouri. Ray allegedly engaged in multiple illegal activities in the state.

Ray allegedly received advanced payment for loan modification services, failed to provide loan modification services that were paid for by consumers from the advance fees, failed to refund consumers for the loan modification services that were not provided and failed to include legally compulsory notifications of homeowners' rights in contracts between his company and the homeowners.

"In these difficult economic times, Missourians need fair, honest mortgage modification consultants," Koster said. "This office will continue to prosecute those who try to take advantage of homeowners trying to modify their mortgages."

Koster's lawsuit seeks restitution for consumers in addition to penalties.

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