Quick Answer: Mass joinder lawsuit red flags include upfront fees, guaranteed results promises, and out-of-state solicitations targeting homeowners seeking mortgage relief. The Washington Attorney General warns these schemes often involve unlicensed firms, while legitimate class-action suits never require payment to join.
The Washington Attorney General’s Office cautions homeowners about paying to participate in a “mass joinder” lawsuit promising mortgage relief.
The lawyers and marketers pushing these suits charge upfront fees and frequently promise results. In reality, litigation is time-consuming and even a qualified attorney can’t guarantee the outcome of a case. Moreover, representatives of a legitimate class-action suit would not ask for money to join.
Homeowners should be especially skeptical of solicitations from out-of-state firms, which may not be familiar with Washington law or licensed to provide legal services in this state.
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The Federal Trade Commission recently banned mortgage relief companies from collecting fees until homeowners have received an acceptable written offer from a lender or servicer. Attorneys are generally exempted from the rule but are required to place any fees they collect in a client trust account and abide by state laws and regulations covering such accounts.
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The Attorney General’s Office is also seeing companies pushing forensic mortgage loan audits and services with titles like “pre-litigation monetary claims program.” So-called loan auditors, often backed by attorneys, offer to review your loan documents to determine whether your lender complied with state and federal laws. They claim they can use the audit report to avoid foreclosure, accelerate the loan modification process or reduce your loan principal.
The Federal Trade Commission warns that there is no evidence that forensics loan audits will help a homeowner obtain a loan modification or other foreclosure relief, even if the audit is conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.
The FTC also notes that some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable. – Source
Before You Sign Anything: Run any debt relief contract through the free Contract Decoder to spot hidden fees and unfair terms. Check the company’s complaint history with the Scam-O-Meter.
Compare Your Real Options: Most debt relief companies won’t tell you about all your options — especially the ones they can’t profit from. Credit counseling has a 21-27% completion rate. Settlement resolves about 1% of enrolled debts fully. Bankruptcy has a 95% discharge rate — and protects your retirement. Take the Find Your Path quiz for a recommendation based on your actual numbers.
THE AG’S ARE NO HELP. WE HAVE NO CHOICE NOW BUT TO SUE THE BANKS. SORRY , YOU AG’S HAD YOUR CHANCE TO STAND UP TO THE FRAUD.
THE AG’S ARE NO HELP. WE HAVE NO CHOICE NOW BUT TO SUE THE BANKS. SORRY , YOU AG’S HAD YOUR CHANCE TO STAND UP TO THE FRAUD.