Wisconsin sues loan modification firm already banned in Idaho

The Wisconsin Attorney General is suing a California-based mortgage loan company that's already been told by another state to stop doing business.

The company, California-based "USA Loan Auditors," which goes by "Relief Law Center," allegedly engaged in deceptive practices by mailing a notice telling homeowners that their mortgage lenders are under investigation. They suggested themselves as the solution. But upon calling the company, the homeowners received a sales pitch for loan modification services, according to consumer complaints.

In April, officials in Idaho issued a cease and desist order against the company.
The telephone number listed for Relief Law Center in a Better Business Bureau Report has been disconnected, and the company could not be reached. The BBB gave Relief Law Center a grade of F, its lowest.

The Federal Trade Commission warns mortgage loan scammers are adding a new dimension to foreclosure rescue fraud.

A company offering such services may not be legitimate if:
  • it tells you not to contact your lender, lawyer or credit counselor directly
  • it requires payment only by wire transfer or cashier's check and asks for it upfront
  • it tells you to make mortgage payments to the company itself, rather than your lender
According the FTC, maintaining contact with your original lending company is crucial if you get behind in your mortgage payments.
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