TALLAHASSEE, FL – Attorney General Bill McCollum today sued a Jacksonville company and its directors alleging the company is engaged in foreclosure rescue fraud. According to the lawsuit, National Foreclosure Counseling Services, Corp., operated by Raymond Paulk and Robert Dallavia, targeted homeowners facing foreclosure and charged up-front fees for loan modification services in violation of Florida law.
The Attorney General also requested the Duval County Circuit Court issue an injunction against National Foreclosure Counseling Services requiring the company to immediately stop demanding up-front fees from customers before providing services.
An investigation conducted by members of the Attorney General’s Economic Crimes Division, working as part of the Attorney General’s Mortgage Fraud Task Force, determined National Foreclosure Counseling Services, Corp allegedly lured customers using mailings which implied the solicitations came from a government agency, claimed the consumers had been selected for special programs by “Government Insured Institutions,” and stated the mailings constituted a last attempt to assist the homeowners before foreclosure.
Before accepting a homeowner as a client, National Foreclosure Counseling Services Corp., would allegedly require the consumer to sign a “working agreement” which included an up-front “retainer fee” averaging $1,800, an up-front “processing fee” of $200, and an hourly fee of $125 for future services. The lawsuit further states that the company failed to perform the services following payment. National Foreclosure Counseling Services, Corp. offers services nationwide and has already been sued by the Attorneys General of Illinois and Minnesota.
The Jacksonville lawsuit, which has also requested consumer restitution, is one of several filed by the Attorney General since the Foreclosure Rescue Fraud Prevention Act became law on October 1, 2008. The law specifically addresses companies which claim they can save homes from foreclosure by negotiating or modifying the terms of the homeowners’ mortgages. Civil penalties for violating the law can be up to $10,000 per violation or $15,000 if the victim is a senior citizen or disabled individual.
The Attorney General’s Office has received thousands of complaints about these companies and their services over the past several months.
Consumers who wish to file a complaint about the company may do so by filing an affidavit with the Attorney General’s Office. A form and instructions is available online at:
http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7QQSK5/$file/Affidavit.pdf
A copy of the lawsuit is available online at: http://myfloridalegal.com/webfiles.nsf/WF/JFAO-7QQSKU/$file/Complaint.pdf
Florida Toll Free: 1-866-966-7226.
Read more from the Sun Suntinel
Related News
{ 8 comments… read them below or add one }
So the question is HOW does one find help that is both competent AND honest?
Do as we did, call your mortgage company. They don’t want your house, they just want the money. Use these companies as a last resort and if you do, DON’T PAY ANYTHING UPFRONT!!!! Thats what got this company into hot water. Also, here is a copy of what the law says these folks are allowed and not allowed to do: http://laws.flrules.org/files/Ch_2008-079.pdf
To avoid scammers it also helps to find a foreclosure attorney and find out the best way to proceed. A competent foreclosure attorney will be Board Certified in their State for speciality in real estate and/or foreclosure. This way you are at least dealing with an individual who has a higher standard of trust and will still be well qualified to help you chart the proper course to at least save your credit rating, if not your house. Pre-foreclosure is also an option that should be discussed with a foreclosure attorney.
If you have been scamed by these people in another state, how do we go about getting our money back.
We signed & paid with Florida National Foreclosure Counseling Services. NFCS was the middle man between us and SPS. We have documentation that our taxes would be included. Now SPS Profiling Services is saying that our taxes are NOT included. How do we go about getting our money back from NFCS and dealing with SPS (NFCS would deal direct with SPS)
i live in danbury connecticut i was ono of them.
Those in other States, other than Florida, make a compliant to your state’s Attorney General office. We probably won’t get our money back, but its the principle. These cowards, who said they were operating properly, filed for bankrupct and are now operating under two different names. I question, if they were honorable, why didn’t they ask for their date in court to prove so, hmmmm.
I had a mortage with Country Wide. I was going through a loan modification with them.
Bank of America took over Country Wide and did not honor the loan modification as agreed. They are trying to make me pay the 9,000 dollars that accrude while my modification was being evaluated.
Bank of America put me on a high monthly loan amount that is seriously higher than my old mortgage note.
old mortgage note – (1,112.49) With Country Wide first Modification
Bank of America asked me to pay 1,142.46
I couludn’t make the payments on this when it was with Country Wide.
Now Bank of America wants me to pay 1,429.46
Please help they are about to forclose my house.
Please help!
TONY GRANDBERRY
1789 ENGLEHART ST.
CORDOVA, tn 38016
(901) 651-8121
{ 1 trackback }