|
NEWARK
- The Division of Consumer Affairs has mailed
notices of violation to eight New Jersey-based
companies that allegedly offered loan modification
services to consumers without being licensed.
The
eight companies each were cited for violating
the state's Consumer Fraud Act for engaging
in unconscionable commercial practices by
allegedly offering to negotiate mortgage modifications
without being licensed as a debt adjuster
by the Department of Banking and Insurance.
“Homeowners
looking for mortgage help instead are becoming
victims of fraud, and risk ending up in a
worse situation,” Attorney General Anne
Milgram said. “We want these eight unlicensed
debt-adjuster companies to reimburse consumers
for fees paid and to comply with our laws.”
The
Notices of Violation are the latest in an
on-going series of actions taken by the Office
of the Attorney General and the Division of
Consumer Affairs to protect consumers in the
current mortgage and home foreclosure crisis.
To date, 10 civil lawsuits have been filed
against 101 defendants who allegedly committed
mortgage or foreclosure fraud against consumers.
The
Division also filed suit against a Lakewood-based
firm, United Credit Adjusters, and obtained
a court judgment in July that permanently
barred the company from performing credit
counseling, credit repair or debt adjuster
work in New Jersey.
The
eight companies each sent a Notice of Violation
on November 24 are:
| |
|
|
| Name
|
Town
|
Consumer
Restitution |
| |
Colts Neck |
$1,695.00 |
|
| |
Englishtown |
$1,000.00 |
|
| |
Bridgewater
& Freehold |
$2,495.00 |
|
| |
Cherry
Hill |
$2,995.00 |
|
| |
Mt.
Laurel &
Sicklerville |
$1,706.91 |
|
| |
Neptune |
$2,495.00 |
|
| |
Elizabeth
&
Rutherford |
$3,067.00 |
|
| |
Cherry Hill |
$3,786.00 |
|
Each
company has been assessed a $5,000 civil penalty,
in addition to the noted restitution.
Each
company has the option of not contesting the
charges contained in the Notice of Violation
and paying the civil penalty and restitution
within 15 days. Each company also has the
option of contesting the charges and requesting
an administrative hearing before the Division.
Mortgage/Financial
Fraud Unit staff in the Division’s Office
of Consumer Protection conducted the investigations
of these companies.
Consumers
can find information on licensed debt adjusters
on the Department
of Banking and Insurance’s web site
Consumers
may file
complaints with the Division online or
by calling 1-800-242-5846
(toll free within N.J.) or 973-504-6200.
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