Arizona AG Issues Mass Joinder Alert to Residents

By on August 26, 2011
Arizona AG Issues Mass Joinder Alert to Residents

Efforts to quash mass joinder marketing are picking up steam. On the heels of last weeks raid and seizure of some attorney office in California, Arizona is getting into the game by issuing this warning.

Attorney General Tom Horne today issued a warning to consumers to be wary of any notices or advertisements that claim to offer homeowners facing foreclosure “complete forgiveness of the loan” or other monetary relief if they join a class-action lawsuit. Such ploys are likely a pretext to collect illegal up-front fees for foreclosure assistance.

In class action litigation, consumers generally do not have to pay to join, and most reputable firms will not charge a fee for attorneys to review your case or to determine if you are eligible to join a lawsuit.

“The mortgage crisis is only made worse by predators who take advantage of consumers who are already facing the loss of their home,” Horne said. “State and federal law ban almost all types of up-front fees for foreclosure assistance. I am committed to prosecuting anyone who engages in this type of consumer fraud, and it is just as important that consumers be vigilant against these types of scams.”

The California Attorney General recently filed a lawsuit against California lawyer Philip Kramer, the Law Offices of Kramer & Kaslow, 19 other lawyer and non-lawyer individuals and companies, for deceptively marketing class action or “mass joinder” lawsuits. The defendants in that case are believed to have taken over $7 million in fees from homeowners in 17 states – including Arizona – after sending out hundreds of thousands of flyers advertising the program. The lawsuit alleges that the defendants advertised nationwide settlements against lenders that did not exist and that many servicers were not provided by lawyers or legal staff.

Notices may be mailed to homeowners or posted on their doors. Typically, the business claims that the fee they are charging is for a forensic audit of your loan documents to see if you are eligible to join the class action litigation. However, the Federal Trade Commission’s Mortgage Assistance Relief Services Rule (“MARS Rule”) contains a broad ban on requesting or collecting up-front fees for almost all types of mortgage assistance, including forensic audits related to foreclosure relief. Arizona’s foreclosure consultant statute also prohibits companies from collecting an up-front fee for assisting homeowners in foreclosure.

Foreclosure rescue companies may promise to refund your fee if you are not eligible to join the litigation. However, the Office’s experience with guaranteed refunds indicates that they are very difficult to obtain, or the company may disappear before the refund is paid. If you are facing foreclosure, refuse to pay up-front fees and instead the Arizona Foreclosure Prevention Helpline at (877) 448-1211 for free assistance provided by HUD approved housing counseling agencies.

If you feel you’ve been a victim of a class joinder scam or any other type of consumer fraud, please the Arizona Attorney General’s Office Consumer Information & Complaints Unit at (602) 542-5763 / (520) 628-6504 / (800) 352-8431.

The field of companies offering mass joinder suits against mortgage lenders, or tort litigation as some call them, has become very muddied. It’s impossibly hard to tell good players from bad these days and more consumers have been harmed than helped from the type of abusive marketing that was cracked down on.

This most certainly is not the last you’ll hear about mass joinder issues as the cases continue and new marketers pop up every day.


READ  FTC Announces New Advanced Fee Ban for Mortgage Assistance Relief Services

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s and and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Euro-Video and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Share a Comment / Leave a Reply

showroom-kiev.com.ua

adulttorrent.org

steroid-pharm.com
%d bloggers like this: