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Indiana Charges Mortgage Broker With Scamming Homeowners

Attorney General files suit over false advertising and predatory tactics

October 9, 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

There is already plenty of fear and uncertainty when it comes to homeowners and their mortgages, and the State of Indiana has accused a Michigan mortgage broker of trying to exploit it.

Indiana Attorney General Steve Carter has filed a lawsuit seeking an injunction and restitution against Union Financial Services, Inc., a mortgage broker that offered to perform mortgage services in Indiana.

Carter alleges that Union Financial violated Indiana's Deceptive Consumer Sales Act when it sent letters to at least 17 residents in Delaware and Steuben Counties claiming that their property tax bills were not paid and tax liens were being placed on their residences.

Union Financial also claimed in its letters that it could help the Indiana residents pay off the tax liens, receive additional cash, and pay off credit card debt through home equity loans.

Carter says an investigation by the Office of the Attorney General's Homeowner Protection Unit revealed that the property taxes had already been paid or had not yet come due, and there were no tax liens on any of the residences.

"This company used false statements and advertising to prey on residents of Delaware and Steuben Counties," said Carter. "Actions like this one will act as a reminder that any company will be held responsible when it attempts to deceive Indiana homeowners."

In addition to an injunction and restitution for injured Indiana residents, Carter's complaint seeks $5,500 in civil penalties for each deceptive act, as well as reimbursement for the State's costs.

Homeowners everywhere should be suspicious of any notice of unpaid property taxes unless it comes from a local government agency that is in charge of taxation.

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