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24 July 2014

Law suits launched against law firms across US over mortgage advice

Federal agencies and 15 states have initiated 41 law suits against law firms and lawyers concerning alleged scams over the provision of legal help to struggling homeowners.

By Neasa MacErlean

Regulators have taken lawsuits against law firms involved in the mortgage market vShanpshotPhotos

Suits have been brought, for instance, against Florida law firms Hoffman Law Group and Lanier Law, the (now closed) Mortgage Law Group of Chicago and its three partners and Utah’s Danielson Law Group. The so-called Operation Mis-Modification was co-ordinated by the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission and states including Florida, Illinois, New York, Arizona and Washington. 

Relief scams

The CFPB claimed: ‘The defendants disguised their false promises of foreclosure relief for struggling homeowners with claims that they were performing legal work. These tactics are used by foreclosure relief scams to attract victims, add credibility to their schemes, or exploit certain legal exemptions for the practice of law.’ Source: ABA

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