Ohio Sues 2 Cincinnati-Based Foreclosure Rescue Services

Ohio Attorney General Richard Cordray filed a lawsuit Friday against two Cincinnati-based foreclosure rescue companies accused of failing to deliver on their promises to save consumers from foreclosure. 

The suit, filed in the Hamilton County Court of Common Pleas, charges Foreclosure Assistance USA Inc. and American Foreclosure Professionals Inc. with several violations of Ohio consumer protection law. 

“These companies have been sending direct-mail solicitations that specifically refer to the foreclosure lawsuit an individual consumer is facing by its unique case number,” said Cordray in a news release. “The companies said they could offer immediate assistance in saving the consumer’s home from foreclosure, but they failed to do so. They promised work-out agreements, but did not deliver.”

Cordray said an investigation of FA USA and AFP, which began in March 2008, found that the same person serves as president of both companies and that the two companies offer similar foreclosure assistance services to consumers facing foreclosure. 

In addition to direct-mail, AFP also advertises its services at www.helpstopforeclosurenow.net. 

The lawsuit charges the companies with violating Ohio’s Consumer Sales Practices Act, Credit Services Organization Act and Debt Adjusters Act. Cordray said his office currently has four unresolved complaints against AFP, with damages ranging from $700 to $900 each. 

The office also has four unresolved complaints against FA USA, with alleged damages between $900 and $1200 each. 

In the lawsuit, Cordray asked the court to prohibit FA USA and AFP from committing further violations of the law and to require the companies to reimburse consumers and pay civil penalties.