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State Law Group Appears in the Connecticut Time Out Corner

New update from Connecticut today on another debt relief company.

State Law Group is a purported California professional law corporation with offices, at various times, at 1740 E. Garry Avenue, Suite 221, Santa Ana, California; 4533 MacArthur Boulevard, Suite 1000, Newport Beach, California; 4533 MacArthur Boulevard, Suite 537, Newport Beach, California; and 1720 E. Garry Avenue, Suite 111, Santa Ana, California.

Tesfai is an individual who, at all times relevant hereto, was an attorney associated with State Law Group.

State Law Group, at all times relevant hereto, has offered and is offering debt negotiation services by mail and via the Internet.

On February 3, 2011, a Connecticut resident (“Connecticut Resident 1”), while physically present in this state, entered into a “Privileged Attorney-Client Communication” (“Agreement”) with State Law Group, in which Connecticut Resident 1 engaged the services of State Law Group in connection with negotiating a possible mitigation of such resident’s current home loan situation. In connection with the Agreement, Connecticut Resident 1 executed a Borrower’s Authorization in which Connecticut Resident 1 authorized State Law Group to request, obtain and verify any and all mortgage loan information, which included, without limitation, payoff, arrearage, reinstatement amounts, work out offers, rate and term modification, principal balance modification, short sale initiation and proceedings, and deed in lieu of foreclosure.

In connection with the Agreement, Connecticut Resident 1 paid $1,165 to Tesfai, which amount is in excess of amounts that debt negotiators may charge for services pursuant to the Schedule of Maximum Fees established by the Commissioner on or about October 1, 2009 (“Schedule of Maximum Fees”).

On February 10, 2011, a second Connecticut resident (“Connecticut Resident 2”), while physically present in this state, entered into an Agreement with State Law Group, in which Connecticut Resident 2 engaged the services of State Law Group in connection with negotiating a possible mitigation of such resident’s current home loan situation. In connection with such agreement, Connecticut Resident 2 executed a Borrower’s Authorization in which Connecticut Resident 2 authorized State Law Group to request, obtain and verify any and all mortgage loan information, which included, without limitation, payoff, arrearage, reinstatement amounts, work out offers, rate and term modification, principal balance modification, short sale initiation and proceedings and deed in lieu of foreclosure.

In connection with the Agreement, Connecticut Resident 2 paid $2,995 to State Law Group, which amount is in excess of amounts that debt negotiators may charge for services pursuant to the Schedule of Maximum Fees.

Based upon information provided by State Law Group, on or after October 1, 2009, at least twelve (12) additional Connecticut residents, while physically present in this state, entered into similar agreements with State Law Group.

Based upon information provided by State Law Group, payments ranging from $1,165 to $2,995 were paid to Respondents by each of the Connecticut residents referred to in paragraph 8 above, which amounts are in excess of amounts that debt negotiators may charge for services pursuant to the Schedule of Maximum Fees.

The Schedule of Maximum Fees provides, in pertinent part, that “[a] debt negotiator of secured debt, including Short Sales and Foreclosure Rescue Services, may impose a fee upon the mortgagor or debtor for performing debt negotiation services not to exceed five hundred dollars ($500). Such fee shall only be collectable upon the successful completion of all services stated in the debt negotiation service contract”.

At no time relevant hereto have Respondents been licensed to engage or offer to engage in debt negotiation in this state, nor did Respondents qualify for an exemption from such licensure.

The Commissioner received a complaint dated March 16, 2011, filed by Connecticut Resident 1 concerning Respondents’ failure to perform or successfully complete the services specified in the Agreement.

As of April 11, 2011, State Law Group claims it had refunded $1,165 to Connecticut Resident 1.

On December 6, 2011, the Commissioner received a complaint filed by Connecticut Resident 2 concerning Respondents’ failure to perform or successfully complete the services specified in the Agreement.

As of February 1, 2012, State Law Group had refunded $2,995 to Connecticut Resident 2.

On April 10, 2012, the Commissioner received a complaint filed by yet another Connecticut resident who had retained Respondents for debt negotiation services and paid Respondents $2,990 for such services. As of April 27, 2012, State Law Group had refunded $2,990 to such resident.

THE COMMISSIONER THEREFORE ORDERS, pursuant to Section 36a-52(b) of the Connecticut General Statutes, that State Law Group immediately CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes. This Temporary Order shall become effective upon receipt by State Law Group, and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order. – Source

State Law Group Appears in the Connecticut Time Out Corner
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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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