Michigan Attorney General Mike Cox has alerted the BBB that Michigan residents victimized by foreclosure fraud schemes will be able to receive refunds as a result of charges filed against SaveMyHome USA, Payment Doctors and the Michigan Economic Reinstatement Program by the Attorney General’s office. The companies were held accountable after an investigation by the Attorney General's office, with the assistance of the Better Business Bureau, discovered that the companies charged borrowers upfront fees in violation of the Michigan Credit Services Protection Act.
The companies offered mortgage modification assistance to homeowners facing foreclosure. They claimed they would help homeowners by working with their lenders in an attempt to modify the borrower's mortgage. However, the Attorney General’s investigation discovered that the companies charged borrowers upfront fees, a practice prohibited by law. After paying the upfront fee, many borrowers found that the companies could not secure a modification and were subsequently unable to get their money back.
Each company pleaded no contest to one count of violating the Michigan Credit Services Protection Act. They also agreed to provide the Attorney General's office with customer lists that will be used to determine how many customers are entitled to restitution for fees paid for services that were never provided. Further, the companies have agreed to have all their employees sign an acknowledgement of their responsibilities under Michigan law and the penalties for possible violations. Final sentencing hearings will be scheduled in the next 30-60 days, during which companies could be subject to fines.
Attorney General Cox urges any consumers who paid fees to SaveMyHome USA, Payment Doctors, the Michigan Economic Reinstatement Program, or any other mortgage modification company for services that were not provided, to contact the Attorney General's Consumer Protection Division at (877) 765-8388.
The Michigan Attorney General and your local Better Business Bureau remind homeowners they can find foreclosure information on his website at www.michigan.gov/avoidforeclosure. The website includes contact information for government agencies and debt counselors, and also offers tips for those facing foreclosure, including:
- Homeowners are never required to pay to speak with their lender or servicer.
- Homeowners do not need to pay for outside assistance. Free assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432.
- If you do hire outside assistance, never pay up front for help with negotiating your loan or working with your servicer.