Six Companies Faces State Legal Wrath

Posted in Foreclosure, Foreclosures, Government Foreclosures, August 13th, 2007 |

The office of the Ohio Attorney General, Marc Dunn is suing six Ohio companies for being involved in foreclosure scams. They are being taken to task on five different acts that took place in Franklin, Delaware, Cuyahoga, Hamilton, Lucas and Mahoning counties. Accused for a total of 44 different counts among the five acts the companies are now facing a penalty of $25,000 for each violation.

The five companies are United Foreclosure Managers LLC based in Youngston, Foreclosure Solutions LLC based in Cincinnati, Pinnix Business Services based in Shaker Heights, Home Restoration Services based in Cleveland, Foreclosure Assistance Solutions based in Clearwater, American Housing Authority Inc based in California and American Housing Financial Inc based in Phoenix. The last two are being jointly charged.

One of the main charges is that these companies approached the borrowers and said that they would stop the foreclosure proceedings for fees ranging from $425 to $1,200. Even after taking the money they did not stop the process. Each company has been charged with one count of transgressing the Debt Adjusters Act by claiming to be able to discharge a note.

The companies each face charges of two counts for violating the Consumer Sales Practices Act of Ohio according to which the companies register with the state and get the necessary sanctions. Four of the companies violated laws related to registration of telephone and also for making false statements.

Michelle Gatchell , a spokeswoman of the Attorney General’s Office is of the opinion that Ohio is one of the states ranking high in the foreclosure malaise. Complaints have been pouring in. So far the number is more than seventy. The office apprehends that during the forthcoming weeks the number will rise. This has been one of the main driving forces for the state to initiate drastic legal action against the offenders. Ohio till now has been so far a happy hunting ground for scamsters.

The state is trying to get full compensation for those who have lodged complaints. The figure has not yet been because more complaints are likely to be registered. The companies would be barred from further business until they paid up the penalty.
Some of the companies failed to comment and decided to stay tight-lipped. The others just could not be located. Perhaps they thought that it was more judicious to lie low and bide time.

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