By Alison Goebel, Associate Director On July 23, 2014, Ohio Attorney General Mike DeWine joined fourteen other state Attorneys general, the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC) in filing lawsuits against “foreclosure relief scammers.” Ohio’s lawsuit, filed against a Chicago Company, is one of forty-one companion lawsuits against a total of nine individuals or companies. The lawsuits are being dubbed “Operation Mis-Modification.”
The Plaintiffs allege these companies misrepresented their services or failed to perform services for consumers who were facing foreclosure and seeking assistance, such as loan modifications. According to the Operation Mis-Modification lawsuits, many of the defendants allegedly took advance payments in excess of allowable limits and/or received payment for services never rendered.
If Ohio’s lawsuit is successful, impact consumers may see restitution and the state may receive penalty fees. For Operation Mis-Modification, Ohio is joined by Attorneys general from Arizona, Delaware, Florida, Indiana, Kansas, Louisiana, Maryland, Michigan, New Mexico, New York, North Carolina, Washington and Wisconsin.
The Operation Mis-Modification lawsuits are not like current “bank settlements” that are in the works, such as the settlement with Bank of America. The “bank settlements” are expected to include billion-dollar agreements with lending financial institutions. These settlements could benefit consumers, or go directly to states, as did the funding that supported the Moving Ohio Forward program. As more information is released on potential future bank settlements, GOPC will be sure to update its blog and social media channels.