The Florida Attorney General Sues Another Loan Modification Company

Bill McCollum’s, the Florida Attorney General, office is suing four South Florida loan modification companies for allegedly charging homeowners upfront fees to provide foreclosure prevention services.The parties to the lawsuit include Mortgage Crisis Solutions Association, Property Solutions Specialists, One Source Communications and Nationwide Financial Partners, & Principals Donald R. Gillette and Flynn McCarthy.

These companies are being accused of charging homeowners as much as $2,995 for a loan modification and not providing any service to them. The state law forbids companies from charging foreclosure prevention services until the actual modification has been completed. The attorney general also accuses these companies of claiming to provide legal services, when none are authorized to practice law.

“We sought this injunction to better protect this company’s victims,” said Attorney General McCollum. “Judging from the complaints we have received, many people have been sorely taken advantage of by this company and Mr. Gillette.”

These new law suites come just a week after Lincoln Lending Services received a similar suit for loan modifications. This at least shows that someone is cracking down on companies trying to take advantage of people in trouble.

To read more about Florida attorney general sues 4 Miami firms over loan fees head on over to the Miami Herald.