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AG’s office sues 2 foreclosure consultants

December 18, 2012

The Office of the Indiana Attorney General has filed lawsuits against two foreclosure consultant companies that took more than $2,600 from Indiana homeowners without providing services or refunds.

Nevada-based Blue Chip Group Inc. and Calif.-based Certified Legal Processing and Legal Preparation Services are accused of violating the Credit Services Organization Act, the Mortgage Rescue Protection Act, the Home Loan Practices Act and Indiana’s Deceptive Consumer Sales Act. Attorney General Greg Zoeller is seeking injunctions against the companies, restitution for the victims, civil penalties and attorney fees.

According to the lawsuit filed Monday in Lake County, Blue Chip Group contracted with two residents in Lake and Spencer counties, and charged upfront fees for foreclosure consultant services ranging from $495 to $730. Certified Processing and Legal Preparation Services is accused of collecting $1,400 in upfront fees from a Porter County resident for similar services. Zoeller filed suit against the California company in Porter County.

Both companies allegedly did not provide the services paid for and have not provided refunds. The businesses didn’t obtain certificates of authority from the Indiana Secretary of State’s Office to do business here and did not register $25,000 surety bonds with the AG’s office.

“Our office continues to investigate and prosecute those who take advantage of Hoosiers and send the message that these types of illegitimate businesses are not welcome in our state,” Zoeller said in a statement.

 

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