Attorney General Pam Bondi News Release
April 11, 2011
Contact: Whitney Ray
Phone: (850) 245-0150
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Attorney General Bondi Warns Consumers of Home Loan Modification Scams

Tallahassee, Fla.–Today, Attorney General Pam Bondi filed a complaint against a home loan modification company for allegedly requiring consumers to pay an upfront fee for services. According to an investigation by the Attorney General’s Office, U.S. Mitigators, LLC, a company providing home loan modification services, was allegedly requiring consumers to pay an upfront fee of $2,100 before services were rendered. Many consumers reported paying the $2,100 fee and an additional $399 application fee for services they never received. The Attorney General’s complaint against the company seeks more than $48,000 in restitution for consumers.

“Charging upfront fees for loan modification services is illegal,” said Attorney General Pam Bondi. “If consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.”

Under Florida law, loan modification companies may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services before completing or performing all services contained in the agreement.
To file a complaint, consumers can call the Attorney General’s fraud hotline at 1-866-966-7226 or file online at http://www.myfloridalegal.com.