Attorney General Files 10 Suites against Foreclosure Companies
By: Marchelle McConnell
Updated: October 21, 2010
Attorney General, Greg Zoeller, filed 10 law suits today. One was filed in Allen County against a New Jersey based company called Colonial Financial Solutions. Zoeller says”This company specifically has taken over $1,250 from a Fort Wayne resident and has not done anything as far as we can see to provide services.”
Zoeller says the companies are illegal because they charge upfront and haven't registered with the Secretary of State. Zoeller says “Each of these companies have failed to meet the statutory minimum that are there to protect consumers.”
The Attorney General says There are dead give away's that a company is fraudulent. Zoeller says “All these companies are usually online services. You might hear them advertise on the radio. If they are out of state companies against ask if they have an Indiana bond.”
If the company is for-profit, the state says it's a scam. Good news, there are non-profits counselors that the state has endorsed. Fort Wayne Urban league is one. They offer both group and one-on-one foreclosure counseling.
Paula McGee, A councilor at Fort Wayne Urban League, says “When they go to individual counseling that's when they will make up their mind and start working with the figures to know what one can afford. If you are ready to get some assistance we are here.”
Zoeller says it's important to ask two questions when seeking foreclosure help: One, do you have a bond and two, are you registered with the state.
Colonial Financial Solutions, the company accused in the local case has disbanded, which will make it more challenging for the state to get the money.
