Minn. accuses Utah company in loan modification fraud
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The Minnesota Department of Commerce has filed charges against yet another company offering unlicensed mortgage adjustments.
Commerce Commissioner Mike Rothman says Utah-based C.C. Brown Law took $134,000 in payments from Minnesotans without providing the promised services.
"At the end of the day," Rothman says, "what happens is that loan modification companies make promises to consumers who are in financial distress, and they blatantly exploit consumers and are doing outright fraudulent activity."
The charges against C.C. Brown Law come on the heels of a spate of other prosecutions against mortgage adjustment firms by the Minnesota Department of Commerce.
The firm's offices in Utah were raided by federal law enforcement last week. Rothman says the charges will be heard by an administative judge in August. They could result in fines.
He adds that consumers should be wary of firms that demand upfront payments. "To make sure that you're not a victim, never pay those advance fees up front," Rothman says. "If you suspect fraud or being ripped off, contact us and report it as soon as possible."
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