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Indiana Targets "Foreclosure Consultant"

Attorney General wants deceptive claims stopped

September 22, 2008

Mortgage "Rescuers" • Florida Attorney General Warns Big Banks On Modifications • Ohio Sues Mortgage Servicer For 'Incompetence' • Brown Challenges Banks On 'New Wave' Of Foreclosures • California Law Cracks Down On Foreclosure Rescue • Feds And States Get Tough On Scams • FTC Continues Crackdown On Mortgage Relief Scams • Florida Sues Foreclosure "Rescuer" Targeting Hispanics for Fraud • Class Action Proceeds Against Debt-Relief Scam • States Increase Pressure On Foreclosure Consultants • New York Sues Loan Modification Company • California Puts Foreclosure Consultants On Notice • Mortgage Modification Program Off To Slow Start • Florida Sues Four Foreclosure Rescuers • California Sues Dozens Of Mortgage Rescue Scammers • Don't Put Your Hopes, Or Money, In A Loan Modification • Ohio Launches Foreclosure Rescue Crackdown • Feds Look at Tougher Foreclosure 'Rescue' Rules • California Seeks To Register Foreclosure "Consultants" • FTC Slams Fake Government Loan Rescue Operation • Ohio Puts Heat on Foreclosure Rescue Operations • California Foreclosure ‘Rescue’ Defendants Rounded Up • Missouri Joins Mortgage Scam Smackdown • Florida Targets Fraudulent Foreclosure "Rescue" • Florida Foreclosure "Rescue" Company Shut Down • Illinois Sues Seven Companies for Mortgage Rescue Fraud • California Busts Foreclosure Scam Ring • Florida Sues Foreclosure Rescue Company for Deceptive Practices • Mortgage Rescue Fraud Schemes On The Rise • Indiana Charges Mortgage Broker With Scamming Homeowners • Indiana Targets "Foreclosure Consultant" • Missouri Attorney General Takes on Foreclosure Scams • New Washington Law Protects Distressed Home Sellers • Foreclosure 'Rescue' Firm To Pay $1.2 Million To Arizona Victims • Florida Governor Signs Foreclosure Rescue Law • California Busts 'Land Grant' Foreclosure Scam Artists • California Shuts Down Mortgage Scam Artists • FTC Takes On Mortgage 'Rescue' Operations • Illinois Uses New Law to Sue Mortgage Rescue Company • Washington State Settles with Mortgage "Rescuers" • Scams and Foreclosures On the Rise • Illinois Sues Mortgage "Rescue" Companies • Mortgage Crisis? Act Now to Avoid Foreclosure • North Carolina Shuts Down Mortgage "Rescue" Operation • Illinois Shuts Down Mortgage "Rescue" Scam • Indiana Fines Mortgage "Rescue" Firm • Illinois Sues Another Mortgage Foreclosure "Rescuer" • Missouri Sues Foreclosure "Rescue" Business • Illinois Launches Offensive Against Foreclosure "Rescuers" • New York Takes On Predatory Real Estate Scams • Texas Halts Bogus Foreclosure Rescue Operation

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.

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