The Consumer Financial Protection Bureau (CFPB) has announced a $12 million settlement that resolves an enforcement suit brought 10 years ago against a foreclosure relief operation that the agency identified as a scam.
In May 2014, the CFPB filed a complaint against Consumer First Legal Group LLC and four attorneys – Thomas G. Macey, Jeffrey J. Aleman, Jason Searns, and Harold E. Stafford – alleging they charged millions of dollars in illegal advance fees to financially-distressed homeowners for legal representation that was never provided. The CFPB won a judgment against the defendants in 2019 but the case has been ongoing due to multiple appeals by the defendants.
Under the terms of the settlement, the defendants will pay $10.9 million in consumer redress and a $1.1 million penalty into the CFPB’s victims relief fund. The individual defendants are covered by five- and eight-year bans from the mortgage assistance industry, under the district court’s original order.
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I’m glad they won this one, however there are many other cases where cfpb don’t take take any action and lenders and other companies get away with what they do to consumers, so sad!!!
Exactly right!! cfpb does nothing for the consumer, the cfpb must have seen this case as a money maker for those in charge.
I am hoping they will resolve the Zombie silent mortgages that has forced many homeowners to unfair foreclosures and emotional stress. I am a victim and it is truly a nightmare. Bought my home in 2004 . Lender was sued and sold mortgage pennies of the dollar. Never heard anything until 6 months ago with a NOD now NOS. Struggling to save my home as a senior with a disabled son.. First mortgage says keep paying on your first.
Zombie mortgage original amount of 79,000.00 ,now fees and penalties of $200,000.
Anyone out there ..Please help me save our home ! I never received periodic statements and unable to acquire a loan due to property in Distress. Please help me . Sale date is 3/19/2024. Thank you so much for listening.
As a Taxpayer, REALTOR & Homeowner, I greatly appreciate CFPB’spersistence!
CFPB: a solution in search of a problem.
Must be a reason why it took 10 long years. No explanation given
In the article: “The CFPB won a judgment against the defendants in 2019 but the case has been ongoing due to multiple appeals by the defendants.”
Because the individual defendants are attorneys, they had the ability to just keep appealing to drag it on.
The defendants are attorneys; they know the “tricks” to creating delays; time simply ran out on them so time to pay the piper!
CFPB is a useless Agency for the consumer. How much money have they amassed in the victim’s fund? and how much of that money has actually been given to the consumer and not gone into the pockets of the one person at the top running the cfpb and upper management? The CFPB should be dissolved.
The CFPB is a good idea in theory. In practice, not so much. Who oversees the CFPB? Who audits its effectiveness? How many cases have been filed since its inception? What is each case’s outcome? We need answers to these questions. Otherwise, do you hear that sucking sound?