Swanson sues 6 companies over mortgage actions

(AP) - Six out-of-state companies are being sued by Minnesota's attorney general over claims they took advantage of people trying to keep their homes out of foreclosure.

A series of lawsuits that Attorney General Lori Swanson has filed in Hennepin County District Court say the firms violated a Minnesota law by asking for upfront fees for the mortgage advice. The cases allege they failed to deliver on their promises, too.

She says a 2004 law bars foreclosure consultants from charging consumers until after they have fully performed their duties.

The cases are similar to two others Swanson's office filed in December. All of the lawsuits seek to bar the activities, penalize the companies and reimburse the affected consumers.

The companies in this action are located in Alabama, California, Florida, Nevada and Oklahoma.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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