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Mortgage Businesses Sued For Violating "Do Not Call" Law

Pennsylvania alleges companies aggressively marketed mortgages

August 14, 2008 

Charles A. Ruppersberger IV of Baltimore, doing business as Direct Leadsource, and Justin Harford of State College, Pennsylvania, doing business as Golden Apple Mortgage, Foote's, Inc. and New Equity LLC, are accused of using illegal telephone solicitations for aggressively marketing mortgage products to consumers.

Attorney General Tom Corbett calls it the largest-ever systematic effort to violate the Do Not Call program since it was created in 2002.

"As the economy and housing markets change in Pennsylvania and around the country, some mortgage companies are using aggressive new tactics to solicit customers," said Corbett.

Ruppersberger and his Baltimore-based company, operating under the names Applied Financial and Financial Awards Center, are accused of using a telephone call center in Gujarat, India, to place in excess of 500,000 sales calls to Pennsylvania consumers marketing various first and second mortgages.

"This is the most extensive campaign of telemarketing calls to consumers on the Do Not Call list ever investigated by my office," Corbett said. "Using an international call center, they invaded the homes of thousands of Pennsylvania residents with unsolicited and unwanted phone calls, marketing mortgage loans that they were not licensed to sell."

Ruppersberger and his business, which are not licensed by the Pennsylvania Department of Banking to sell mortgages in the Commonwealth, are accused of committing numerous other violations of state law, including:

• Failing to register their telemarketing operation.

• Calling consumers who had previously asked not to be called again.

• Calling consumers after 9:00 p.m.

• Failing to identify themselves to consumers.

• Failing to register the fictitious business names with the Pennsylvania Department of State.

According to the lawsuit, Ruppersberger and his company violated Pennsylvania's Consumer Protection Law; the Telemarketer Registration Act; the Mortgage Bankers and Brokers and Consumer Equity Protection Act; the Secondary Mortgage Loan Act; and the Fictitious Names Act.

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