October 9, 2008
There is already plenty of fear and uncertainty when it comes to
homeowners and their mortgages, and the State of Indiana has accused a
Michigan mortgage broker of trying to exploit it.
Indiana Attorney General Steve Carter has filed a lawsuit seeking an injunction and restitution against Union Financial Services, Inc., a mortgage broker that offered to perform mortgage services in Indiana.
Carter alleges that Union Financial violated Indiana's Deceptive Consumer Sales Act when it sent letters to at least 17 residents in Delaware and Steuben Counties claiming that their property tax bills were not paid and tax liens were being placed on their residences.
Union Financial also claimed in its letters that it could help the Indiana residents pay off the tax liens, receive additional cash, and pay off credit card debt through home equity loans.
Carter says an investigation by the Office of the Attorney General's Homeowner Protection Unit revealed that the property taxes had already been paid or had not yet come due, and there were no tax liens on any of the residences.
"This company used false statements and advertising to prey on residents of Delaware and Steuben Counties," said Carter. "Actions like this one will act as a reminder that any company will be held responsible when it attempts to deceive Indiana homeowners."
In addition to an injunction and restitution for injured Indiana residents, Carter's complaint seeks $5,500 in civil penalties for each deceptive act, as well as reimbursement for the State's costs.
Homeowners everywhere should be suspicious of any notice of unpaid property taxes unless it comes from a local government agency that is in charge of taxation.
