State Attorney General Horne Issues Consumer Warning About New Mortgage Ploy

facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

PHOENIX – Arizona homeowners should be on the lookout for a mailing that appears to be a legal document, but may be a ploy against mortgage consumers, Attorney General Tom Horne said today.

The mailing comes in an envelope that appears to be an official legal or government document, but there is no company name or return address on the envelope or the letter itself.  A call to the toll-free number in the letter reveals the company as Fresh Start, based in New York.

The letter informs homeowners that they may be eligible to join a national lawsuit or make a potential legal claim against a mortgage lender.  The pitch from Fresh Start is that the homeowner must first pay $2,700 for the company to do “research” and then another $2,500 to retain a lawyer.  Such up-front fees are a violation of federal regulations and Arizona consumer fraud laws.

“This is the latest in a seemingly endless series of illegal or possibly illegal ploys related to Arizona’s mortgage crisis,” Horne said.  “Fresh Start claims to offer so-called audit services as a precursor to directing consumers to obtain legal assistance for mortgage holders who may have been victimized in the mortgage crisis.  But they first require as much as $5,200 up front from a homeowner. This is a blatant violation of Arizona law.”

Horne added, “The irony in this case is the consumer who brought this to the attention of my office has not been victimized in the mortgage crisis, but Fresh Start indicated he may be eligible for relief anyway and should pay the initial up-front fee for ‘research’.  Consumers need to be wary of this and other similar ploys.”

admin (7654 Posts)


facebooktwittergoogle_plusredditpinterestlinkedinmailby feather
facebooktwitterby feather

Comments are closed.

  • Stories Just Posted

    Arboretum November Exhibit: Luminary Artist John Aho

    October 30th, 2014
    by

    Tempe luminary artist John Aho celebrates light, both natural and unnatural. By day he excels at capturing subjects ranging from […]


    Gilbert Artists Teach Camera Basics & Fall Color Nov. 9

    October 30th, 2014
    by

    Editor’s Note: Gilbert pro photographer Michael Madsen shoots with a Nikon, while Patty Van Herpen prefers Canon. The artistic duo […]


    Freeport-McMoRan Awards $60,000 Grant to Experience Matters to Enhance Women’s Economic Empowerment, Reduce Domestic Violence

    October 30th, 2014
    by

    Phoenix- Experience Matters, an organization that is creating a stronger, more vibrant community by connecting the skill and passion of […]


    Cowboys, ranchers to be honored at two events

    October 29th, 2014
    by

    Superior Chamber of Commerce will host La Noche de Vaquero, Night of the Cowboy on Saturday Nov.


  • Stories Just For You

    DPS Encourages all Motorists to Drive Courteously This Holiday Season

    December 23rd, 2013
    by

    Arizona – The Arizona Department of Public Safety (DPS), through its Highway Patrol Division, encourages all travelers to drive with […]


    Arvel Bird At the Arboretum New Year’s Day Concert at noon

    December 19th, 2013
    by

    Here’s a resolution you’ll find easy to keep: spend New Year’s Day outdoors at one of Arizona’s most scenic venues, […]


    Arizona Superintendent of Public Instruction visited San Carlos Secondary School

    December 2nd, 2013
    by

    John Huppenthal, Arizona Superintendent of Public Instruction visited San Carlos Secondary School, one of the Cobre Valley Institute of Technology’s […]


    Happy Thanksgiving!

    November 28th, 2013
    by

    Copper Area News would like to wish you a happy Thanksgiving! Please remember to drive safely this holiday weekend. For […]


  • Facebook

  • [Advertisement.]
  • Arizona Headlines & Current Weather

  • Directory powered by Business Directory Plugin