In a recent round of CFPB moves, the agency has taken its first civil action, suing a Los Angeles law firm for offering bogus mortgage loan modifications.
"The CFPB says that lawyer Chance Gordon, his law firm and two subsidiary companies preyed on financially distressed borrowers by promising to reduce their monthly mortgage payment in exchange for fees of $2,500 to $4,500,” writes American Banker's Kate Berry.
The Gordon Law Firm provided "little, if any, meaningful assistance to modify homeowners' mortgage loans or prevent foreclosure," according to the complaint the agency filed.
The Federal Trade Commission and the State Bar of California have also been targeting law firms involved in mortgage debt-relief scams.
For the full piece see "CFPB Sues California Law Firm Over Alleged Debt-Relief Scam" (may require subscription).