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Attorney General Settles Consumer Claims With Foreclosure Rescue Firm

CONTACT: Elliot Burg, Assistant Attorney General, (802) 828-5507

October 28, 2010

Start Positive Loss Mitigation, LLC, a “foreclosure rescue” company based in Columbia, Maryland, has entered into a settlement with the Vermont Attorney General’s Office that will result in consumer refunds and payments to the State totaling $26,000. “The last thing we will tolerate in the midst of a foreclosure crisis,” said Attorney General William H. Sorrell, “is a business that makes false promises about how it will help consumers at risk of losing their home.”

According to the Attorney General, Start Positive violated the Vermont Consumer Fraud Act by charging fees in advance of providing services, making claims of results without substantiation, failing to obtain any loan modification for a Vermonter, and not giving proper notice of consumers’ right to cancel. Starting in January 2009, 13 Vermonters paid a total of approximately $16,000 to the company in response to online promises that the company could “save your home,” “stop the foreclosure,” and “lower your mortgage payments.”

Under the settlement, Start Positive will provide full refunds to all Vermont consumers, pay $10,000 in civil penalties and costs to the State, and comply with all applicable state and federal laws.

For more information on the settlement, consumers can call the Attorney General’s Office at (802) 828-5507.

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