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Illinois AG Sues Firms for Alleged Mortgage Rescue Fraud

Illinois AG Sues Firms for Alleged Mortgage Rescue Fraud

Posted on November 23, 2008 by Chief Marketer Staff

Seven mortgage-rescue outfits were slammed with lawsuits last week by Illinois Attorney General Lisa Madigan.

Madigan alleged that the firms targeted homeowners who had fallen behind on their mortgage payments. They promised that they could negotiate with lenders to reduce payments and save homes, but victims received little or nothing after paying fees upfront, the AG continued.

The AG is seeking permanent injunctions against the firms and civil penalties of $50,000 and an additional fine of $50,000 for each act committed with intent to defraud. In addition, she is $10,000 for each act committed against a senior citizen.

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