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Madigan sues 13th mortgage rescue provider
7/24/2008 12:14 PM
 | | Madigan |
Illinois Attorney General Lisa Madigan on Thursday filed a lawsuit against an Ohio-based company for allegedly engaging in a mortgage rescue fraud scheme.
The attorney general claims that Foreclosure Solutions, LLC and company president Timothy Buckley of Maineville, Ohio, preyed on struggling homeowners on the verge of foreclosure.
The company solicited business in Cook, Champaign, McLean and Macon counties by sending letters to residents offering help to people who had fallen behind on their mortgage payments.
The complaint charges the company violated the state Mortgage Rescue Fraud Act and the Consumer Fraud and Deceptive Business Practices Act by falsely promising to help consumers save their homes from foreclosure.
The defendants charged consumers $1,250 and promised to provide mortgage foreclosure rescue services, which either were never performed or were ineffective, the lawsuit says.
"This scheme is typical of those that prey on homeowners in crisis, stripping them of their most valuable asset," Madigan said in a statement. "I intend to continue to take aggressive legal action against these illegal rescue schemes that only further victimize Illinois homeowners with their deceptive and fraudulent practices."
The lawsuit against Foreclosure Solutions, LLC, is the thirteenth lawsuit Madigan has brought against mortgage rescue fraud companies.
The lawsuit seeks a civil penalty of $50,000, additional penalties of $50,000 for every violation found to have been committed with the intent to defraud, as well as a $10,000 penalty for each violation committed against a person 65 years or older.
The attorney general is also asking the court to rescind the contracts signed as a result of deceptive practices and offer full restitution to affected consumers.
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