Hope Now Financial Services was charged in New Jersey Superior Court, Camden County, in a three-count complaint, with violation of the Consumer Fraud Act by, among other things, making numerous misrepresentations and false promises, and with violation of state advertising regulations. The complaint charges that Hope Now Financial placed content on its Web site designed to deceive consumers into believing it was affiliated with the Hope Now Alliance, a legitimate non-profit organization that provides credit counseling and free foreclosure prevention.
The lawsuit also charges that Hope Now Financial charged already-distressed consumers thousands of dollars in upfront fees for loan modification services, but failed to provide any such services. Ultimately, the lawsuit charges, consumers fell further behind on their mortgage payments, making the threat of foreclosure more likely. In addition, the state charges that Hope Now Financial failed to provide refunds to consumers who requested them upon realizing they were receiving no services for their money. Among Hope Now‘s victims were a husband and wife from Eagleswood Township, Ocean County, New Jersey, who had more than $2,800 billed to their credit card by the defendants, received no loan modification services, and ultimately confronted foreclosure after they stopped paying their mortgage on the advice of a company representative.
New Jersey Attorney General Anne Milgram made the announcement. The case is titled Milgram v. Hope Now Financial Services.