Massachusetts AG reaches settlement with mortgage broker for deceptive practices

Massachusetts AG reverse mortgagesThe Massachusetts Attorney General’s Office (AG) issued a press release on April 11, 2017, announcing that it had reached a settlement with mortgage broker, Direct Finance Corp., one of its loan originators and an outside insurance agent to resolve claims that the defendants preyed on elderly homeowners.

In August 2015, the AG filed a lawsuit alleging that the defendants had engaged in sales tactics that convinced elderly homeowners to apply for reverse mortgages and invest their proceeds in risky financial products, including variable annuities. In some cases, those annuities included severe withdrawal penalties if the consumer accessed more than a small percentage of their proceeds during the first few years of the annuity.

Colorado AG announces $491,000 judgment against debt collection agency

Peak Resolution lawsuitOn April 5, 2017, the Colorado Attorney General’s Office issued a press release announcing that it had secured a judgment requiring a debt collection agency and two of its principals to pay approximately $491,000 in consumer restitution, penalties, and attorney fees. The judgment also prohibits the defendants from conducting business in Colorado or from collecting debts from Colorado citizens without proper licensing and full legal compliance.