Ohio AG Files Complaint Against California Loan Modification Companies Over Misrepresentations

On November 6, the Ohio Attorney General’s Office (Ohio AG) announced that it had filed a complaint in Ohio state court against a California man and two companies he owned (the California Companies) for making deceptive promises in connection with loan modification assistance to consumers.  The California Companies contacted consumers and offered them loan modification services for purchase, representing that attorneys would assist the consumers in obtaining a modification.  The California Companies promised a full refund in the event that a loan modification was not secured within three months.  Consumers often paid $1,000, or more, to obtain these services.  The Ohio AG further alleged that when consumers who did not receive a modification requested a refund, they were unable to obtain one.

The complaint filed against the California Companies asserts that the above actions violated both the Ohio Consumer Sales Practices Act (CSPA), R.C. 1345.01 et seq., and its substantive rules, Ohio Administrative Code (OAC) 109:4-3-01 et seq., and the Ohio Debt Adjuster’s Act, R.C. 4710.01, et seq.

Enforcement Watch will continue to track this litigation as it develops.