AZ warning issued about new mortgage ploy - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

AZ warning issued about new mortgage ploy

Posted: Updated:
Arizona Attorney General Tom Horne Arizona Attorney General Tom Horne
  • Most Popular StoriesMost Popular StoriesMore>>

  • Police hunt for 2 who carjacked SUV, killed 3 kids

    Police hunt for 2 who carjacked SUV, killed 3 kids

    Saturday, July 26 2014 9:13 AM EDT2014-07-26 13:13:25 GMT
    Police are searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit at a Philadelphia street corner, killing three kids and seriously injuring two women.More >>
    Police are searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit to raise money for their church, killing three siblings and critically injuring their mother and the...More >>
  • Indian teen has 232 'teeth' removed from jaw

    Indian teen has 232 'teeth' removed from jaw

    Friday, July 25 2014 11:23 PM EDT2014-07-26 03:23:39 GMT
    After complaining of pain in his jaw, an Indian teen and his family discovered that he had a severe dental condition - and surgeons pulled 232 "teeth" from his jaw. More >>
    After complaining of pain in his jaw, an Indian teen and his family discovered that he had a severe dental condition - and surgeons pulled 232 "teeth" from his jaw. More >>
  • Coroner: Girl's body was found in abandoned trailer's bathroom

    Coroner: Girl's body was found in abandoned trailer's bathroom

    Friday, July 18 2014 3:26 PM EDT2014-07-18 19:26:33 GMT
    It's been an extremely difficult day for family and friends as well as officers. So many people were crying, upset as the body of 5-year-old Janaya Thompson was removed from an abandoned trailer.More >>
    It's been an extremely difficult day for family and friends as well as officers. So many people were crying, upset as the body of 5-year-old Janaya Thompson was removed from an abandoned trailer. Coroner Gary Hargrove said Janaya's body was found in a bathroom.More >>
PHOENIX (CBS5) -

A new mortgage ploy is surfacing in Arizona, Attorney General Tom Horne said Wednesday.

Residents are being warned about a mailing that appears to be an official legal or government document. There is no company name or return address on the envelope or the letter itself, Horne said. A call to the toll-free number in the letter reveals the company as Fresh Start, based in New York.

The letter informs homeowners that they may be eligible to join a national lawsuit or make a potential legal claim against a mortgage lender. The pitch from Fresh Start is that the homeowner must first pay $2,700 for the company to do "research" and then another $2,500 to retain a lawyer. Such up-front fees are a violation of federal regulations and Arizona consumer fraud laws, Horne said.

"Fresh Start claims to offer so-called audit services as a precursor to directing consumers to obtain legal assistance for mortgage holders who may have been victimized in the mortgage crisis," Horne said. "But they first require as much as $5,200 up front from a homeowner. This is a blatant violation of Arizona law."

Horne said it's ironic that the consumer who brought this to the attention of his office has not been victimized in the mortgage crisis, but Fresh Start indicated he may be eligible for relief anyway and should pay the initial up-front fee for "research."

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

Powered by WorldNow