U.S. Mitigators, LLC, a company providing home loan modification services, has been sued in Florida for allegedly requiring consumers to pay an upfront fee for services.
The defendant was allegedly requiring consumers to pay an upfront fee of $2,100 before services were rendered. Many consumers reported paying the $2,100 fee and an additional $399 application fee for services they never received. The complaint against the company seeks more than $48,000 in restitution for consumers.
Under Florida law, loan modification companies may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services before completing or performing all services contained in the agreement.
Florida Attorney General Pam Bondi announced the complaint filed by her office. The investigation was conducted by the Attorney General’s Office.
“Charging upfront fees for loan modification services is illegal,” said Attorney General Pam Bondi. “If consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.”
To file a complaint, consumers can call the Attorney General’s fraud hotline at 1-866-966-7226 or file online at http://www.myfloridalegal.com.