Attorney General Richard Blumenthal today announced he is suing a Florida-based debt restructuring company for allegedly charging Connecticut homeowners tens of thousands of dollars, and then failing to deliver on promises to help them avoid foreclosure.
Florida-based FHA All Day.Com, allegedly began soliciting Connecticut customers by mail and the Internet in January 2009, and claimed that for $2,500 to $4,500 it would negotiate with lenders to avoid foreclosure and reduce indebtedness, Blumenthal said.
FHA All Day.com promised one homeowner a refund of its upfront fee if it failed to obtain a mortgage modification, and falsely told another it was authorized by the federal government to provide mortgage rescue services, Blumenthal said.
The company failed to win loan modifications, reduce indebtedness, give promised refunds or provide other mortgage rescue services, the lawsuit charges.
“FHA All Day only did one thing all day: scam consumers,” Blumenthal said. “Far from helping homeowners escape debt, FHA All Day exploited them, taking their money and delivering nothing. Callously and cruelly, bottom feeder mortgage rescue schemes hit families when they are most vulnerable, desperate to save their homes.”
Blumenthal sued the company in cooperation with Department of Consumer Protection Commissioner Jerry Farrell, Jr.
The lawsuit seeks restitution for consumers and civil penalties of up to $5,000 per violation of state consumer protection laws.
Upfront fees demanded by FHA All Day became illegal on Oct. 1, Blumenthal said.
