Complain about a product or service

Indiana Targets "Foreclosure Consultant"

Attorney General wants deceptive claims stopped

September 22, 2008

Mortgage "Rescuers" • 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.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Back to the top |