Sunday, January 29, 2023 | Back issues
Courthouse News Service Courthouse News Service

State Accuses Four of Debt & Mortgage Scams

CHICAGO (CN) - Illinois says four companies scammed consumers for thousands of dollars through sham debt-reduction and mortgage-rescue schemes. Attorney General Lisa Madigan sued Debt Care Financial Group, Starlex Financial Consulting, Flagship Mortgage and E.A.C. Financial, in Cook County Court.

Madigan claims the companies did little or no work after receiving taking upfront fees for loan modification and debt reduction services.

"These companies are nothing more than scam operations, illegally charging consumers upfront fees but doing no work to help modify their loan or negotiate with creditors," Madigan said in a statement.

"They scammed families out of thousands of dollars while putting people deeper in debt and at higher risk for foreclosure."

Madigan wants the companies shut down, enjoined, and ordered to pay restitution and civil penalties.

Read the Top 8

Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.