Florida Attorney General Bill McCollum has filed a lawsuit against a Miami company and its owner alleging the company is engaged in foreclosure rescue fraud.
According to the lawsuit, Lincoln Lending Services LLC targeted Hispanics facing foreclosure and charged up-front fees for loan modification services, both in violation of the Foreclosure Rescue Fraud Prevention Act.
According to consumer complaints, Lincoln Lending advertised for mortgage foreclosure assistance and rescue services. The complaint alleges that to get around the statutory prohibition against up-front charges, the company would have consumers pay $2,700 for ‘forensic analysis’ services, then sign a contract for alleged modification services. The forensic analysis fee was allegedly created to circumvent the new foreclosure rescue fraud law, which McCollum helped create last year.
McCollum's Economic Crimes Division has determined that Lincoln Lending also forwards consumers to an attorney working under the business names of Florida Foreclosure Law Center LLC and Florida Homeowner Assistance Center LLC.
The attorney general's lawsuit petitions the court to issue a temporary injunction against the company while litigation continues. It also seeks consumer restitution and, ultimately, a permanent injunction prohibiting the company and its owner, Rita Gomez, from engaging in similar business practices.
SOURCE: Office of Attorney General Bill McCollum