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NEWARK
– The Office of the Attorney General
and State Division of Consumer Affairs this
week filed administrative actions against
11 unlicensed businesses offering “mortgage
loan modification” services for homeowners
in dire financial straits. State law requires
that anyone providing these services in
New Jersey be licensed as a Debt Adjuster
by the Department of Banking and Insurance,
or be otherwise authorized.
Attorney
General Paula T. Dow and Thomas R. Calcagni,
Acting Director of the State Division of
Consumer Affairs, made the announcement
as part of National Consumer Protection
Week. The violations were filed as part
of the Division’s ongoing initiative
to crack down on those businesses operating
outside the law.
“When
homeowners are desperate for help, struggling
to pay their debts and keep their homes,
they should be able to trust the businesses
that offer to help. Because so much is at
stake for the homeowner and the overall
economy, the State will not tolerate unlicensed
businesses that present themselves as legally
authorized to offer mortgage modification
services to individuals in great need,”
Attorney General Paula T. Dow said.
The
Division of Consumer Affairs filed Notices
of Violation against the businesses, which
were found to be in violation of the Consumer
Fraud Act’s Advertising Regulations.
The businesses offered mortgage loan modification
services even though they are not licensed
to do so in New Jersey. The State is seeking
$55,000 in civil penalties and $125,906.29
in consumer restitution from the businesses.
The amounts sought in consumer restitution
represent the fees paid by approximately
65 consumers for mortgage loan modification
services.
“When
people fear losing their home, they are
vulnerable to making desperate decisions
that can put them in an even worse situation,”
said Thomas R. Calcagni, Acting Director
of the State Division of Consumer Affairs.
“With this statewide initiative, we’re
turning up the heat on those businesses
that take advantage of homeowners in their
hour of desperation. And we’re sending
a clear message to all mortgage modification
businesses in the state: You will comply
with our laws.”
The
following is a list of the 11 businesses,
and the amounts the State is seeking from
each in civil penalties and consumer restitution:
- ASRC,
LLC, of Little Falls. The State is seeking
a $5,000 civil penalty and $1,000 in consumer
restitution from this company.
- Creative
Land Marketing Corp., d/b/a CLM Corp.
Home Mitigation Advisors, d/b/a Express
Debt 411, d/b/a Home Mitigation Adv.,
d/b/a Express Home 411, of New Brunswick.
The State is seeking a $5,000 civil penalty
and $1,250 in consumer restitution.
- Excel
Loan Modifications, of Cherry Hill. The
State is seeking a $5,000 civil penalty
and $1,059.01 in consumer restitution.
- Homeowners
First Financial, LLC, of Parsippany. The
State is seeking a $5,000 civil penalty
and $2,200 in consumer restitution.
- Hope
Loan Today, of Robbinsville. The State
is seeking a $5,000 civil penalty and
$14,000 in consumer restitution.
- Integrity
Plus Financial, LLC, of Berlin. The State
is seeking a $5,000 civil penalty and
$3,000 in consumer restitution.
- Loan
Modification Firm, LLC, of Union City.
The State is seeking a $5,000 civil penalty
and $1,500 in consumer restitution.
- Mortgage
Foreclosure Experts, LLC, of Mt. Laurel.
The State is seeking a $5,000 civil penalty
and $9,917.28 in consumer restitution.
- Mortgage
Solutions for America, LLC, of Gibbsboro.
The State is seeking a $5,000 civil penalty
and $1,251 in consumer restitution.
- National
Foreclosure Group d/b/a/ Hope 4 Solutions,
LLC, of Woodbury. The State is seeking
a $5,000 civil penalty and $88,479 in
consumer restitution.
- Spiros
Chartofillis, of Nutley. The State is
seeking a $5,000 civil penalty and $2,250
in consumer restitution.
A
mortgage loan modification involves changing
the terms of an existing loan – for
example, by lowering the monthly payments,
adjusting the interest rate, extending the
length of the loan, or in some cases decreasing
the unpaid balance.
The
only types of business that can engage in
mortgage loan modification services in New
Jersey are:
- Nonprofit
organizations licensed as Debt Adjusters
by the State Department of Banking and
Insurance;
- The
lender or owner of the loan;
- The
mortgage servicer acting on the lender
or owner’s behalf; or
- An
attorney, provided he or she is not primarily
engaged in debt adjustment.
The
Department of Banking and Insurance provides
a complete listing of all licensed debt
adjusters in New Jersey at www.nj.gov/dobi/division_consumers/finance/counselors.html
.
Additionally,
financially distressed homeowners, or homeowners
who have received foreclosure notices or
court complaints, can learn about the New
Jersey Judiciary Foreclosure Mediation Program
at www.nj.gov/foreclosuremediation
.
The
Division of Consumer Affairs offers the
following additional information, designed
to help homeowners avoid being scammed while
they face foreclosure, at www.njconsumeraffairs.gov/mortgage
.
NATIONAL
CONSUMER PROTECTION WEEK (NCPW)
is a coordinated campaign that encourages
consumers nationwide to take full advantage
of their consumer rights and make better-informed
decisions. NCPW 2011 takes place March 6
through 12, 2011.
More
information designed to help consumers protect
themselves is offered free of charge at
the State Division of Consumer Affairs NCPW
website at www.njconsumeraffairs.gov
. Information is also available at the official
National Consumer Awareness Week website,
www.NCPW.gov.
Consumers
who believe they have been cheated or scammed
by a business, or suspect any other form
of consumer abuse, can file a complaint
with the State Division of Consumer Affairs
by visiting its website, www.NJConsumerAffairs.gov,
or by calling 1-800-242-5846
(toll free within New Jersey) or 973-504-6200.
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