It what seems like a broken record, I still can’t believe debt relief companies are selling to Connecticut residents, or ever sold to them without being registered. The Connecticut Department of Banking takes these issues seriously.
Todays lesson on this comes courtesy of the Compliance Audit Group. The irony here is Compliance Audit Group referred to themselves as “America’s leading real estate finance and mortgage loan audit experts.” As the leading experts, you’d think they would have known to register.
The State of Connecticut states:
At all times relevant hereto, Respondent was a purported entity with offices located at 468 Camden Drive, Suite 280, Beverly Hills, California; 468 North Camden Drive, Suite 280, Beverly Hills, California; and 3325 Wilshire Boulevard, Suite 940, Los Angeles, California.
On or about January 4, 2012, two Connecticut debtors executed a “Compliance Audit Retainer Agreement” (“Agreement”) authorizing Respondent to represent the Connecticut debtors in the modification of such debtors’ mortgage loan.
In connection with the Agreement, the Connecticut debtors agreed to pay Respondent $2,950.
The $2,950 charged by Respondent and paid by the Connecticut debtors to Respondent in connection with the Agreement is in excess of amounts that debt negotiators may charge for services related to secured debt pursuant to the Schedule of Maximum Fees established by the Commissioner on or about October 1, 2009 (“Schedule of Maximum Fees”).
Specifically, 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 has Respondent been licensed to engage or offer to engage in debt negotiation in this state, nor did Respondent qualify for an exemption from such licensure.
On or about August 28, 2014, the Commissioner received a complaint filed by one of the Connecticut debtors identified in paragraph 2 concerning Respondent’s failure to perform or successfully complete the debt negotiation services specified in the Agreement. – Source
And these moments of attention typically result in a civil penalty, cease and desist, restitution, and refunds.
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