The State of Indiana wants a court injunction to halt the activities of Nationwide Foreclosure Consultants, a company that purported to assist homeowners facing mortgage foreclosure.
"Many homeowners are struggling to contend with financial stress and lapsed mortgage payments," said Indiana Attorney General Steve Carter. "The last thing they need is a fraudulent consultant to make matters worse."
The Homeowner Protection Unit, a section within the Office of the Attorney General, investigates deceptive acts in the residential home loan process. An investigation by this unit determined that Nationwide Foreclosure Consultant has violated the Credit Services Organization Act, the Mortgage Rescue Protection Fraud Act and the Deceptive Consumer Sales Act.
The complaint charges Ken Wieland, operating as Nationwide Foreclosure Consultants, sent a letter to the victim, advertising his services as a foreclosure expert. The letter allegedly claimed the company could help postpone the victim's mortgage payments, obtain a forbearance, and obtain a credit or refund.
The defendant's advertisement also claimed that he is "so confident" that he could help, that his "fees are contingent upon solving [the victim's] mortgage problems," Carter said.
Nevertheless, the defendant agreed to provide these services to the victim for an upfront fee of $895.00, although the defendant eventually agreed to allow the victim to send $495.00 up front and $400.00 in two weeks.
The defendant then sent the victim a packet of information, including a contract for signature. This contract emphasized that payment is required upfront, and it failed to contain statements required by Indiana law of the victim's rights, according to Carter. The victim signed the contract and sent the defendant $495.00.
Carter says the defendant failed to provide the agreed to services, the victim terminated the contract, and the defendant failed to refund the victim her upfront payment.
In addition to the injunction, the Attorney General's complaint seeks civil penalties of $5,500 per violation and restitution of the victim's payment to the defendant.
