I just came across a useful blog entry that address the legal issues involved in type of suit I mentioned earlier here.
It appears from “The Lead Counsel Corner” that these scams are being monitor carefully by the FTC. I hope the Illinois AG is working with them and other AGs to prevent the worst abuse of this sort from happening.
State of Illinois sued a couple of these companies in state court for unlawful business practices which include not giving the homeowners, who are at high risk for foreclosure, any way to cancel their service contract for $1,250.00 nor were they giving the notices provision required by law. In addition, the complaint states these companies had a history of calling these at-risk homeowners and demanding payment or threatening they would lose their homes.
Here are the companies named in the suit and also the websites:
American Financial Corp/National Foreclosure Counseling Service
Complaint courtesy Courthousenews.
Reading Tea Leaves by Randy Wilson 