Colorado's 2nd-Largest Foreclosure Law Firm Sued in Over-Billing Probe

July 24, 2013
Denver Post 
mortgage lending news

Colorado Attorney General John Suthers has launched an investigation into whether Denver-based foreclosure law firm Aronowitz & Mecklenburg "misrepresents its posting costs" when billing homeowners for foreclosure expenses. The charges can reach $150, but the person who does the posting is paid only $7 plus mileage, according to a lawsuit filed in Denver District Court. The subpoena will aid "the investigation of possible deceptive conduct" under Colorado's consumer protection law, Suthers indicated. The litigation argues that Aronowitz & Mecklenburg's ownership of Xceleron, a company that posts notices advising homeowners of their foreclosure rights, allowed it to generate millions of dollars by charging a posting fee five to six times higher than the market rate. Investigators with the AG's office say the profits could surpass $5 million. Suthers hopes to force the law firm to comply with investigative subpoenas issued in April for detailed documents explaining the charges. There are about four other cases in which Suthers' office has recently sued a law firm or process-service company over information about their charges to homeowners.
Web Link

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.