Foreclosure consultants agree to pay money back following lawsuitPosted: Updated:
PHOENIX - Could Arizona homeowners finally be seeing some justice?
3 On Your Side is following details of a settlement between the Arizona Attorney General and Principal Reduction Group.
We’ve reported on Principal Reduction Group and its owner, Brian Cutright before.
Just a few months ago we brought you the story of one of PRG’s alleged victims, Marc Goldberg. Like thousands of Arizonans, he received a letter in the mail from Principal Reduction Group.
He was enticed by the offer.
They claimed that they could cut down the bottom line on his inflated house payment – for a fee. $5,500 later Goldberg told us the company had done “absolutely nothing” to help.
Attorney General Tom Horne filed a lawsuit accusing PRG of violating the Arizona Consumer Fraud Act. Recently they reached a settlement that states, in part, that PRG and Brian Cutright agree to no longer engage in any activity, directly or on behalf of any third party, that involves originating, closing or modifying any term of a consumer’s mortgage loan, or obtaining a reduction on a consumer’s debt, of any kind, while in the State of Arizona or on behalf of any Arizona consumer.
Horne stated, “Consumer fraud targeting homeowners who are facing difficulties paying their mortgage is a problem that must be dealt with.” He went on to say, “I am committed to finding and prosecuting those people who use predatory schemes.”
Additionally, the settlement agreement provides for full restitution to the consumers who filed complaints with the Arizona Attorney General’s office; on average, those consumers paid $5,500 each for principal reduction services from PRG.
This settlement is the first of its kind since a new law went into effect last July making it illegal for foreclosure consultants to charge homeowners up-front fees for their services.
If you believe you have been a victim of consumer fraud, contact the Attorney General’s Office in Phoenix at 602-542-5763; in Tucson at 520-628-6504; or outside the Phoenix and Tucson metro area at 1-800-352-8431. You can also file a complaint in person. For more information visit www.azag.gov Consumers can also file complaints online by visiting www.azag.gov/complaintform.html
So where does that leave Marc Goldberg and thousands of consumers like him? Waiting to see what happens next.
We are too.
3 On Your Side will continue to follow this settlement agreement to find out if consumers really do get their money back.