18 May Excel Loss Mitigation & United Servicing charged with fraudulent foreclosure rescue scam in Texas
Texas Attorney General Greg Abbott’s office filed for a Temporary Restraining Order against Excel Loss Mitigation Inc., United Servicing LLC, Bell Investments & Developments LLC and their key directors, David Bell and David Espy to stop their foreclosure rescue business.
Further, a Harris County (Houston) district judge froze their assets after the AG’s office charged the companies with running foreclosure “rescue” scams. All of the defendants were also charged with failing to post a bond with the Texas Secretary of State, which is required to legally conduct business in the state of Texas.
Excel changed its name to United Servicing after it received an inpouring of customer complaints. They employed telemarketers who contacted hundreds of homeowners who were struggling to pay their mortgages.
Investigators discovered the telemarketers falsely promised that Excel/United Servicing’s services would allow homeowners to avoid foreclosure. The telemarketers used a script written by the defendants that promised the defendants could negotiate late fees, past due amounts and interest with lenders. Excel/United Services claimed the renegotiation would allow customers to avoid foreclosure and even reduce monthly payments.
To make matters worse, the telemarketers instructed homeowners not to contact their lenders throughout the duration of the “rescue” operation. Further, they told homeowners they would be able to skip two or three months of mortgage payments. In Texas, lenders usually post a home for foreclosure after the homeowner is three months delinquent in their payments. Excel/United Servicing charged homeowners $1,500 for the 45-60 day “negotiation” service they promised to provide.
Investigators further allege Excel/United Servicing made no efforts to negotiate with lenders on customers’ behalf. Client files were in a state of disarray and not stored in a manner that was useful for the company to negotiate on behalf of their client.
The Attorney General’s office is seeking civil penalties of up to $20,000 for each violation of the Texas Deceptive Trade Practices Act, as well as restitution for harmed clients. Additionally, the AG’s office is seeking penalties for numerous violations of the Texas Telephone Solicitation Act and the Texas Finance Code.
If you have been a victim of these companies, please contact the Texas Attorney General’s office at www.TexasAttorneyGeneral.gov or you may call them at 1-800-252-8011.
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