AG bans seven loan companies from doing business in Colorado

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Colorado Attorney General John Suthers’ office has banned seven loan-modification companies from doing business in Colorado because they either failed to deliver promised results or engaged in deceptive advertising.

The firms are Eugene Alkana Law Firm, doing business as Legal Home Solutions; Infinity Group Funding; NC Home Solutions; Traut Law Group; Nationwide Modification Center Inc.; Rescue Home USA; and Summit Resolutions.

The seven companies will be barred from doing business in Colorado unless they comply with state laws, such as requirements that only licensed mortgage brokers or attorneys perform loan modifications. The companies also will be barred from putting out deceptive or false advertisements.

They’ll be required to comply with provisions of the Colorado Foreclosure Protection Act. Under the Foreclosure Protection Act, a consultant can’t charge an upfront fee and must enter into a contract with the borrower that contains specific provisions.

The state attorney general’s actions come as part of “Operation Loan Lies,” a multistate sweep the Federal Trade Commission announced Wednesday morning at a press conference in Los Angeles. The sweep covers nearly 20 states and the District of Columbia.

2 Responses to AG bans seven loan companies from doing business in Colorado

  1. I can’t belief the number of companies involved in ripping off homeowners! These times are difficult and for companies, even law firms like this Traut Law Group, to be taking advantage of people is horrible!

    We are in a desparate situation ourselves but after doing a search on google, it looks like theres a ton of con artists out there. No way do we want to listen to some smooth talker and get ripped off.

    This site following also has a ton of information on companies taking advantage of homeowners:

    http://www.badbizfinder.wordpress.com/?s=loan+mod+scam

    I see where Traut Law Group mentioned by the CO Attorney General is on their list! Do some research and buyer beware!

    Susie Williams
    July 22, 2009 at 1:12 pm

  2. I contacted the Colorado Attorney General’s office on Friday about this problem, here’s their press release:
    http://www.ago.state.co.us/press_detail.cfmpressID=999.html

    They asked for anybody doing business with any of these companies to please contact them immediately!

    They stressed the various government programs and counselors available to help people for free.

    Good luck!

    Susie Williams
    July 26, 2009 at 11:55 am