Posted by John Schenk on 10/14/09 10:59am
Msg #307267
21st Century Sued in Wisconsin
Wisconsin AG sues CA loan modification company
DateTuesday, October 13, 2009 at 9:00PM
In the following press release Wisconsin Attorney General J.B. Van Hollen announced that his office filed suit today against 21st Century Legal Services, Inc. for violating state law in the course of soliciting and selling purported loan modification services to Wisconsin homeowners.
The complaint alleges the California-based company solicited loan modification consulting services by mail, telephone and e-mail to distressed homeowners facing foreclosure. According to the complaint, the company would make initial contact with homeowners by telephone and then follow-up by sending a company representative to the customer’s home. These representatives, in fact, were local notaries hired to go to the homes of potential customers and obtain signatures on sales agreements. The complaint alleges the defendant instructed the notaries not to leave copies of signed agreements with customers and to obtain fees in advance of services, both of which violate state law.
The company also alleges violations of the State’s No Call laws.
“Let this serves as a warning to would-be scam artists that the Department of Justice will prosecute those who engage in this type of activity in Wisconsin,” Van Hollen said. “My office continues to work with the Department of Agriculture, Trade and Consumer Protection and the Department of Financial Institutions in identifying and prosecuting companies who commit fraud against already vulnerable homeowners.”
A copy of the civil complaint can be seen by clicking here.
The suit filed with a Dane County Circuit Court alleges multiple violations of state law including:
* making misrepresentations in the course of conducting sales
* failing to provide consumers with signed copies of sales agreements
* failing to disclose the names of representatives making face-to-face solicitations; and
* engaging in telemarketing practices in violation of Wisconsin’s No Call laws
Other states have filed suit against 21st Century and in mid-September the FBI raided several of the company’s offices in California.
Attorney General Van Hollen and the Department of Agriculture, Trade and Consumer Protection issued a Consumer Alert last month, warning homeowners about loan modification scams and foreclosure rescue fraud. The Alert gave tips on how to avoid fraud and recommended that homeowners at risk of foreclosure or in need of mortgage counseling contact certified HUD counselors, who provide fee services.
If you believe you have been victimized by 21st Century Legal Services, please contact the Wisconsin Department of Agriculture, Trade and Consumer Protection at:
Consumer Protection Hotline
1-800-422-7128 or
File your complaint online
http://www.mortgagefraud.org/journal/2009/10/13/wisconsin-ag-sues-ca-loan-modification-company.html
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