Law Firm Tries to Scam Homeowners

Allison Tussey —  March 4, 2012 — Leave a comment

Corvus Law Group, LLC, Post Falls, Idaho, a law firm that files multi-plaintiff lawsuits against mortgage servicers, has agreed to change how it solicits clients in Idaho.

Pursuant to the agreement, the firm has modified its direct mail ads to comply with the Idaho Consumer Protection Act and to better inform potential clients about the law firm’s services.

The investigation into Corvus Law Group occured after complaints from consumers were received about the law firm’s direct mail solicitations. Labeled a “Form CLG 0127 Litigation Settlement Notification,” the form also claimed the consumer was eligible to participate in a pending multi-plaintiff lawsuit against the consumer’s purported mortgage servicer. According to consumers, it was not until they called the toll-free number on the form and spoke to a Corvus Law Group representative that they learned a lawsuit had not been filed and that to participate in a potential lawsuit, the consumer first had to pay Corvus Law Group a $5,000 retainer fee.

The settlement agreement prohibits Corvus Law Group from using deceptive advertising methods, such as envelopes that appear to originate from the government, and from claiming that the recipient of the solicitation is a party to a lawsuit or a settlement. In its legal services solicitations to Idaho consumers, the firm also must disclose the name and Idaho State Bar number of at least one Idaho licensed attorney who will represent the consumer. Corvus Law Group also must pay the Idaho Attorney General $3,000 to reimburse him for the cost of the investigation.

Idaho consumers with questions about their legal rights or options because of alleged violations of state or federal mortgage lending or foreclosure laws should consult an experienced, Idaho licensed attorney. Consumers can contact the Idaho State Bar at 208-334-4500 to obtain a referral if needed.

Illinois Attorney General Lawrence Wasden announced the agreement.

“Litigation is a lengthy, expensive, and stressful process and there are no guarantees of a successful outcome,” Wasden said. “It is very important that consumers have knowledgeable counsel to help them weigh the risks and benefits of litigating their particular case.”

Allison Tussey

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