Delaware Consumer Protection Unit Reaches Settlement with Two California Loan Modification Companies

​On July 23, 2019, Delaware’s Department of Justice, Consumer Protection Unit (“Delaware CPU”) announced that it reached a settlement​ with two-California based companies that would require them to cease advertising and selling loan modification and debt relief services in the state of Delaware.

According to the cease and desist agreement, the companies and their principals operated a foreclosure rescue scam by sending out deceptive flyers to homebuyers and collecting thousands of dollars in upfront fees in violation of the Delaware Mortgage Loan Modification Services Act, 6 Del. C. §§ 2403C(1), 2408(C)(3), the Delaware Consumer Fraud Act , 6 Del. C. § 2511 et seq., and the Delaware Uniform Deceptive Trade Practices Act, 6 Del. C. § 2531 et seq.  According the Delaware CPU, these services had “little to no value,” and resulted in some homebuyers losing their homes.

Per the terms of the agreement, the companies and their principals will be required to pay $22,275 in restitution to Delaware consumers, and $70,000 in consumer penalties to the state.  The agreement also prohibits the companies and their principals from offering any mortgage loan modification or debt relief service in Delaware.