Modify My Loan US, LLC,
The company, which began operations in Minnesota without a license, also allegedly used false advertising, failed to disclose to customers its precarious financial condition, charged customers fees for loan modification services which were ultimately not provided, and failed to make promised refunds.
According to the department, Modify My Loan US, LLC (MML) charged many Minnesota consumers advance fees ranging from $2,000 to $2,950 for loan modification services, even though the company’s contracts with those customers promised no such fees would be charged. Roughly 200 homeowners paid a collective $362,203 in fees.
One homeowner who paid an upfront fee of $2,750 was given a version of the initial contract in which the money back guarantee had been removed. When she did not receive a loan modification, she did not receive a refund. Another homeowner paid for a loan modification in May 2009 and despite frequent attempts to get information on the status of negotiations on her loan, was unable to get satisfactory updates from MML. In October 2009, she received a notice of a sheriff’s sale set for December 15th, 2009. On December 7th, 2009, MML notified her that her file had been reassigned that that it was aware of the sheriff’s sale. She did not receive any further communication from the company and has not received a refund.
MML allegedly continued to market and to accept payments from customers even after it was clear the company was failing financially and no money was available for customer refunds.
A prehearing conference on the case will be held at the Office of Administrative Hearings on Wednesday October 5th, 2011 at 1:30 p.m.
The Minnesota Department of Commerce filed the charges.
The case is one of several such loan modification scams investigated by the department in recent months.
“Companies and individuals like these think they can line their pockets with hard-earned money from consumers struggling to stay afloat,” said Commerce Commissioner Mike Rothman. “Not on my watch. We’re going to put a stop to it.”