21st Century Legal Services, Inc.

Government Actions

Agency: Attorney General - Other States
Description: On July 30, 2009 , The Arkansas Securities Commissioner filed an Order for Temporary Injunction against this company, enjoining them from engaging in any loan activity, including, but not limited to; mortgage loan modification activities in the State of Arkansas.

Based on the allegations made in an earlier complaint fiing, and supporting documentation, the Commissioner concluded it appears that the company offered or engaged in mortgage loan activity with Arkansas residents in violation of Arkansas law.

The Securities Commissioner determined that harm to the public far outweighs the harm done to the defendants by issuance of the temporary injunction The Commissioner is seeking permanent injunction. The case is currently pending.
Date of Action: 7/30/2009

Agency: Attorney General - Other States
Description: In July of 2009, the North Carolina Attorney General joined federal officials and attorneys general from 17 other states to crack down on foreclosure scammers nationwide. The North Carolina Attorney General filed suit against this company allegeing that the company promised to help North Carolinians negotiate lower mortgage payments and save their homes from foreclosure. The company allegedly took money upfront and did little or nothing to help home owners.

The complaint alleged that the company told consumers it had a “98 percent” success rate at modifying home loans and promised it could negotiate low interest rates, no matter the consumer’s financial situation. The company collected advance fees that ranged from $1,300 to more than $6,700 and often told consumers to stop making their mortgage payments. Once consumers paid the fee, they rarely if ever heard from 21st Century again.

Affidavits filed with the case illustrate the problems consumers encountered with 21st Century. An investigator with the Attorney General’s Office posing as a consumer called 21st Century to ask about modifying her loan. Without knowing anything about her current loan or her credit history, 21st Century agent immediately told her that she qualified for a 3.5 or 4 percent interest rate and that “our attorneys [will] handle everything so you don’t have to.” A Vance County man grew suspicious when 21st Century asked his brother to sign blank forms and write the company three checks worth $500 each. He realized that “no legitimate attorney would ask a client to sign and/or initial blank forms” and was able to prevent his brother from signing up or paying 21st Century any money.
In another case, a Charlotte homeowner signed up with 21st Century but then read complaints about the company online. She called to cancel and even received a refund check, but the check turned out to be a fake. That same week, another agent with 21st Century called her and tried to sell her the company’s services again. “It seemed the agent was unaware of my current controversy with 21st Century,” she wrote in her affidavit.

A North Carolina Court agreed with the Attorney General’s request to bar the companies from doing business with North Carolina consumers. The case is currently pending.





Date of Action: 8/1/2009

Agency: Attorney General - Other States
Description: On October 13, 2009, the Wisconsin Department of Justice filed suit against this company for violating state law in the course of soliciting and selling purported loan modification services to Wisconsin homeowners.

The complaint alleges the company solicited loan modification consulting services by mail, telephone and e-mail to distressed homeowners facing foreclosure. According to the complaint, the company would make initial contact with homeowners by telephone and then follow-up by sending a company representative to the customer’s home. These representatives, in fact, were local notaries hired to go to the homes of potential customers and obtain signatures on sales agreements. The complaint alleges the defendant instructed the notaries not to leave copies of signed agreements with customers and to obtain fees in advance of services, both of which violate state law. The complaint also alleges violations of the State’s No Call laws.

The suit filed with a Dane County Circuit Court alleges multiple violations of state law including: making misrepresentations in the course of conducting sales; failing to provide consumers with signed copies of sales agreements; failing to disclose the names of representatives making face-to-face solicitations; and engaging in telemarketing practices in violation of Wisconsin’s No Call laws.

If you are a Wisconsin resident, and believe you have been victimized by this company, please contact the Wisconsin Department of Agriculture, Trade and Consumer Protection at:
Consumer Protection Hotline 1-800-422-7128 or file your complaint online.

Date of Action: 10/13/2009

Agency: Attorney General - Other States
Description: On February 4, 2010, the Florida Attorney General’s office filed a complaint against this company alleging they charged consumers up-front fees for loan modification services in violation of Florida’s Foreclosure Rescue Fraud Prevention Act.

The suit alleges the company solicited loan modification services to Florida homeowners by telephone, mail and internet marketing. An investigation conducted by the Attorney General’s Economic Crimes Division revealed that 21st Century Legal Services charged an up-front fee as high as $2,500 to homeowners seeking loan modification services. Additionally, consumers have complained that the company has not performed the promised services and that consumers are unable to get refunds.

The complaint further alleges that, after initial contact is made with a homeowner, the company arranges for a "company representative" to visit the consumer at home. These representatives are, in fact, local notaries hired by the company to travel to the consumer’s home and execute the necessary sales agreements. The lawsuit states that the company instructed the notaries not to provide consumers with a copy of the written agreements, in direct violation of Florida law.

The Attorney General’s lawsuit requests full restitution for affected homeowners and civil penalties of up to $15,000 per violation. The Attorney General’s Office is also seeking a court order permanently prohibiting 21st Century Legal Services from further violations of Florida law. The case is currently pending.


Date of Action: 2/4/2010

Agency: Attorney General - Other States
Description: On June 25, 2009 the Ohio Attorney General’s office filed a complaint in Franklin County Superior Court against this company and its principal, seeking declaratory relief, preliminary and permanent injunction, and restitution for victims.

The complaint alleged the company promised to help Ohio homeowners restructure their home loans collecting advance fees between $1,500 and $2,600. According to the lawsuit, the company instructed consumers to stop making payments on their home loans and to stop contacting their lenders.

Consumers were also instructed to make out several post dated checks, each approximately equal to their monthly mortgage payment, and believed the company would take care of the rest. The company allegedly failed to provide the services. The defendants were charged with violations of Ohio's Consumer Sales Practices Act and Debt Adjusters Act. The state is also seeking to hold the companies responsible for reimbursing consumers and to assess a $25,000 civil penalty for each violation.

A Temporary Restraining Order (TRO) was granted by the court on the date of the complaint filing (June 25, 2009) based on a preponderance of the evidence that the company violated the Ohio Debt-Adjuster’s Act, and the Ohio Consumer Sales Practices Act. The TRO temporarily enjoins the defendants, their agents and employees from further soliciting consumers in the State of Ohio to provide debt adjusting services, (including Loan Modification services), advertising on the internet without clearly and conspicuously disclosing on the website that their services are not available to Ohio consumers, or engaging in any acts or practices that violate Ohio State law.

On July 22, 2010 an Order was granted for entry of a default judgement against the defendants when they failed to answer, defend or otherwise appear in any manner during the proceedings as required. Upon entry of the Order the company was permanently enjoined from engaging in any unfair or deceptive practices in violation of Ohio law without limitation. The company is required to pay Civil penalties to the State, and pay restitution and non-economic damages to all consumers injured by their conduct.

For more information or to file a consumer complaint, contact Attorney General Cordray's Office at www.SpeakOutOhio.gov or (800) 282-0515.


Date of Action: 7/22/2010

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