ANNAPOLIS, Md. (Legal Newsline) - Maryland has filed a lawsuit against a Towson-based law firm for allegedly charging clients illegal advance fees for loan modification services, Maryland Attorney General Brian Frosh said Friday.
The Law Offices of Daniel M. Radebaugh and its owner Daniel Radebaugh are accused of charging the fees to at least 400 different clients and then not providing refunds as promised. The law firm negotiated loan modifications for clients and allegedly promised to refund the money if the negotiation wasn't successful, Frosh said.
Frosh's Consumer Protection Division filed the lawsuit claiming the firm made false and misleading representations to potential customers.
The lawsuit claims the firm violated the state's Credit Services Business Act and the Maryland Consumer Protection Act between 2010 and 2013. The firm would require clients to pay up front fees of up to $2,495 even though non-profit organizations offer the same services for free.
The suit is seeking restitution for those clients that were charged the illegal fees and never given a refund. Frosh's office also is seeking a $1,000 civil penalty against Radebaugh and his firm for every alleged violation of the Consumer Protection Act.
A hearing is scheduled for Oct. 1, according to the Attorney General's Office.