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.