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Florida Sues 'Foreclosure Services' Firm
Apr 7, 2008 8:03 AM
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A Florida firm is in big trouble following allegations that it preys on foreclosure victims.

Law & Associates LLC., of Clearwater, FL, was sued last Thursday by Florida Attorney General Bill McCollum. The suit contains six counts under the state’s Deceptive and Unfair Trade Practices Act.

McCollum wants the business shuttered. He also is seeking penalties of $10,000 per violation and restitution to consumers.

Also listed as a defendant is the company’s "sole managing member" Thomas E. Law II.

According to the complaint, Law & Associates sent notices to delinquent homeowners throughout the country, promising to help them stave off foreclosure. These mailers listed "an account number," falsely suggesting that Law & Associates had a business relationship with the homeowner, the complaint alleges.

"You must call 1-800-329-9973 within 72 hours to see if your eligible to take advantage of one of the workout options described below which may stop the foreclosure process," one letter states, the complaint continues.

Those who called were told they had to pay upfront-from $1,500 to $2,000-before the "mitigation process" would start, the complaint adds. They were never told that repayment plans must be individually negotiated with lenders, the papers state.

These victims received "no services," or inadequate ones, the complaint continues.

In addition, the firm failed to honor a money back guarantee, the complaint alleges. In some cases, it advised consumers simply to file bankruptcy, it notes.

McCollum’s office said it had received 65 complaints, most from 2006 and 2007.

"More citizens in Florida are facing the very real possibility of losing their homes to foreclosure than anywhere else in the country," said McCollum in a statement.



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