Va. Company Accused of Violating Consumer-Protection Laws

November 11, 2010

State officials are asking a Virginia court to stop another company from promising worried homeowners it can halt their mortgage foreclosures.

Attorney General Ken Cuccinelli's office filed a lawsuit last week in Chesapeake Circuit Court against the American Neighborhood Housing Foundation. Virginia officials argue the firm with offices in Chesapeake and Richmond violates the state's consumer-protection laws.

Cuccinelli claims in the suit that the foundation improperly collected advance fees before performing the services paid for and made false promises.

The suit is part of a state investigation into the "mortgage modification" industry.

The Virginian-Pilot reports that attempts to contact the company were unsuccessful.

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