Another mortgage repair company is being pulled into court by the Attorney General, who says it’s defrauding customers. Attorney General Chris Koster says companies like First Universal Lending make cold calls or send direct mail solicitations telling people with troubled mortgages or even people wanting better mortgage deals they can fix things.
The company is the latest in a string of companies the Attorney General has sued since April. “They are charging consumers up-front fees, which is illegal under Missouri law, and they’re are not providing the mortgage services that they claim to be,” he says.
Koster claims the companies actually do little or nothing although they promise consumers they can reduce house payments or lower interest rates. He says company representatives sometimes have told consumers to stop making mortgage payments while the modification process is proceeding.
Koster says some people have lost their homes.. He wants First Universal to make restitution to consumers who’ve suffered losses. Unfortunately, he says, the restitution will be the five-thousand dollar fees people pay. It’s not likely they’ll get their homes back.