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Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Mortgage Advertising Lawsuits
Fourth-Quarter 2009 Mortgage Litigation Index

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Lawsuits about mortgage advertising, bait and switch ads, deceptive ads and do-not-call violations.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to Story
Ace Group, Inc., a Delaware corporation, also d/b/a American Credit Experts, Inc., The Ace Group, Inc., The Ace Group, and Ace, Legal Credit Repair Center, Inc., a Florida Corporation, also d/b/a LCRC, Michael Singer, Melvin Kessler, and Gerald Roth Federal Trade Commission U.S. District Court Southern District of Florida na The FTC complaint alleges that the defendants promised to provide credit repair with results in 60-days for advance fees of around $50 plus $59.95 a month. The defendants are accused of repeatedly sending dispute requests even after the bureaus verified the entries on credit reports were accurate. In July of 2009, a Corrected Stipulated Final Judgment and Order for Permanent Injunction and Other Equitable Relief was entered against the defendants. Federal Trade Commission v. Ace Group, Inc., a Delaware corporation, also d/b/a American Credit Experts, Inc., The Ace Group, Inc., The Ace Group, and Ace, Legal Credit Repair Center, Inc., a Florida Corporation, also d/b/a LCRC, Michael Singer, Melvin Kessler, and Gerald Roth Civil Action No. 0:08-CV-61686-PAS Oct. 20, 2008 www.mortgagedaily.com/CreditRepair102809.asp
Advantage Credit Repair LLC and Mark D. Solomon Federal Trade Commission U.S. District Court for the Northern District of Illinois Eastern Division na The FTC complaint for injunctive and other equitable relief alleges that the defendants advertised that they did not charge large upfront fees for services, though in fact they did require as much as $269 in advance. Defendants also promised a refund after 60 days they obtained no results, though they rarely issued those refunds. Federal Trade Commission v. Advantage Credit Repair LLC and Mark D. Solomon Civil Action No. 1:08-CV-05994 Oct. 20, 2009 www.mortgagedaily.com/CreditRepair102809.asp
Best Interest Rate Mortgage Company, LLC, Michael Diplacido State of Pennsylvania Commonwealth Court, Harrisburg Co, Pennsylvania na Pennsylvania AG charges up-front fees for loan modification services and workouts that are either subsequently not performed or are ineffective despite assurances to consumers that they would avoid foreclosure. na na Nov. 23, 2009 www.mortgagedaily.com/ModificationLitigation123109.asp
Federal Housing Modification Department, Inc. also doing business as Nations Housing Modification Center and Loan Modification Reform Association, Michael A. Trap, Glenn Rosofsky, and Bryan Rosenberg Federal Trade Commission U.S. District Court District of Columbia na Defendants are accused of violating the FTA Act and the FTC's Telemarketing Sales Rule by misrepresenting themselves as a federal government agency. In addition, the company allegedly touted a 90% success rate and promised to obtain modified payments for up to a $1,500 fee due two weeks later. The defendants also falsely claimed that they had attorneys and forensic accountants on staff. Federal Trade Commission v. Federal Housing Modification Department, Inc. also doing business as Nations Housing Modification Center and Loan Modification Reform Association, Michael A. Trap, Glenn Rosofsky, and Bryan Rosenberg Civil Action No. 09-CV-01753 Sept. 15, 2009 www.mortgagedaily.com/ModificationLitigation100809.asp
Foreclosure Awareness Corp., Michael Squillance State of Pennsylvania Commonwealth Court, Harrisburg Co, Pennsylvania na Pennsylvania AG charges up-front fees for loan modification services and workouts that are either subsequently not performed or are ineffective despite assurances to consumers that they would avoid foreclosure. na na Nov. 23, 2009 www.mortgagedaily.com/ModificationLitigation123109.asp
Kirkland Young, LLC, Michael Botton, April Botton Krawiecki, Samy Botton, Attorney Aid LLC, David Botton Federal Trade Commission U.S. District Court for the Southern District of Florida na Temporary Restraining Order entered. Alleged violations of Telemarketing Sales Act and Sec. 5 of FTC Act for falsely guaranteeing to provide loan modifications to borrowers. FTC v. Kirkland Young, LLC and Michael Botton 09-23507-CIVGOLD/MCALILEY Nov. 30, 2009 www.mortgagedaily.com/ModificationLitigation123109.asp
Loan Mod One, LLC State of Illinois Cook County Circuit Court na Illinois AG charges up-front fees for loan modification services and workouts that are either subsequently not performed or are ineffective despite assurances to consumers that they would avoid foreclosure.US Homeowners Assistance allegedly violated Ohio Consumer Sales Practices Act, Telephone Solicitation Sales Act, Debt Adjusters Act, and Telephone Consumer Protection Act. Customers were charged $1,800 for responding to automated solicitation phone calls, and the State alleges failure to provide services to clients. na na Nov. 24, 2009 www.mortgagedaily.com/ModificationLitigation123109.asp, www.mortgagedaily.com/ModificationLitigation081209.asp
Nationwide Foreclosure Prevention Center State of Pennsylvania Commonwealth Court, Harrisburg Co, Pennsylvania na Pennsylvania AG charges up-front fees for loan modification services and workouts that are either subsequently not performed or are ineffective despite assurances to consumers that they would avoid foreclosure. na na Nov. 23, 2009 www.mortgagedaily.com/ModificationLitigation123109.asp
RCA Credit Services, LLC, a Florida corporation, Rick Lee Crosby, Jr., individually, and as an officer or manager of Defendant, and Brady Wellington, individually, and as an officer or manager of Defendant Federal Trade Commission U.S. District Court Middle District of Florida na The FTC complaint alleges that the defendants promised to raise credit scores above 700 in as little as 30 days and remove all negative credit for a cost of between $500 and $3,000 with a portion paid in advance, however, RCA often did not provide these services. The defendants are also accused of violating the Credit Repair Organization Act by failing to provide a written statement of Consumer Credit File Rights Under State and Federal Law before contracts were signed and not conspicuously noting in their contracts that consumers have a three-day right of rescission and for failing to provide a written notice-of-cancellation form. Federal Trade Commission v. RCA Credit Services, LLC, a Florida corporation, Rick Lee Crosby, Jr., individually, and as an officer or manager of Defendant, and Brady Wellington, individually, and as an officer or manager of Defendant Civil Action No. 8:08-CV-2062-T-27MAP Oct. 16, 2009 www.mortgagedaily.com/CreditRepair102809.asp
Rudolph Joseph Strobel a/k/a Lee Harrison, individually and doing business as Lee Harrison Credit Restoration, Credit Restoration, and Lee Harrison Associates Credit Restoration, and Leanna Ruth Harrison, individually and doing business as Lee Harrison Credit Restoration, Credit Restoration, and Lee Harrison Associates Credit Restoration Federal Trade Commission U.S. District Court for the Eastern District of Texas $2,500,000 In October 2009, the defendants entered into a settlement with the FTC for $2.5 million dollars. The defendants were accused of violating the FTC Act and the Credit Repair Organizations Act by engaging in deceptive acts or practices in connection with advertising, marketing, promotion, offering for sale, or sale of credit repair services. Federal Trade Commission v. Rudolph Joseph Strobel a/k/a Lee Harrison, individually and doing business as Lee Harrison Credit Restoration, Credit Restoration, and Lee Harrison Associates Credit Restoration, and Leanna Ruth Harrison, individually and doing business as Lee Harrison Credit Restoration, Credit Restoration, and Lee Harrison Associates Credit Restoration FTC File No. 082 3141 Aug. 27, 2008 www.mortgagedaily.com/CreditRepair102809.asp
U.S. Mortgage Mod LLC, Marc Dambrosio State of Pennsylvania Commonwealth Court, Harrisburg Co, Pennsylvania na Pennsylvania AG charges up-front fees for loan modification services and workouts that are either subsequently not performed or are ineffective despite assurances to consumers that they would avoid foreclosure. na na Nov. 23, 2009 www.mortgagedaily.com/ModificationLitigation123109.asp
United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp., Ahron E. Henoch, individually, and Ezra Rishty, individually, and Jane and John Does 1-10, individually and as owners, officers, directors, shareholders, founders, managers, agents, servants, employees, representatives and/or independent contractors of United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp. and XYZ Corporations 1-10 Ann Milgram, Attorney General of the State of New Jersey, and David M. Szuchman, Director of the New Jersey Division of Consumer Affairs Superior Court of New Jersey, Chancery Division, Monmouth County na The defendants were accused of charging up-front fees but failing to deliver promised services including raising credit scores and removing negative entries. The defendants were ordered to pay $500,000 in civil penalties and $86,918 in reimbursement to the state. Two officers of the companies were ordered to pay $15,022 in restitution to 17 consumers. All of the defendants were banned from credit-related businesses. Ann Milgram, Attorney General of the State of New Jersey, and David M. Szuchman, Director of the New Jersey Division of Consumer Affairs, Plaintiffs v. United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp., Ahron E. Henoch, individually, and Ezra Rishty, individually, and Jane and John Does 1-10, individually and as owners, officers, directors, shareholders, founders, managers, agents, servants, employees, representatives and/or independent contractors of United Credit Adjusters Inc., Bankruptcy Masters Corp., United Counseling Association Inc., Credit Bureau Controls Corp. and XYZ Corporations 1-10, Defendants Docket No. Mon-C-158-08 July 28, 2009 www.mortgagedaily.com/CreditRepair102809.asp
United Credit Adjusters, Inc., doing business as United Credit Adjustors and UCA; United Credit Adjustors, Inc., d/b/a United Credit Adjusters and UCA; United Counseling Association, Inc., d/b/a UCA; Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions, Ltd., United Money Tree, Inc., and Ahron E. Henoch, Ezra Rishty, and Gerald Serino, also known as Jerry Serino, The Loan Modification Shop Ltd., and Casey Lynn Cohen Federal Trade Commission U.S. District Court for the District of New Jersey na An amended complaint was filed adding defendants and a preliminary injunction was granted against defendants. Federal Trade Commission v. United Credit Adjusters, Inc., doing business as United Credit Adjustors and UCA; United Credit Adjustors, Inc., d/b/a United Credit Adjusters and UCA; United Counseling Association, Inc., d/b/a UCA; Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions, Ltd., United Money Tree, Inc., and Ahron E. Henoch, Ezra Rishty, and Gerald Serino, also known as Jerry Serino, The Loan Modification Shop Ltd., and Casey Lynn Cohen na Aug. 4, 2009 www.mortgagedaily.com/ModificationLitigation100809.asp
Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to Story
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