On March 29, the Ohio Attorney General (“AG”) announced a lawsuit filed in Ohio state court against a Pennsylvania-based attorney, for alleged violations of Ohio’s Consumer Sales Practices Act and Debt Adjuster’s Act.
According to the complaint, the attorney contacted Ohio consumers, offering loan modification services. He allegedly represented to consumers that his law firm would provide professional legal services to consumers to help them avoid foreclosure. Neither the defendant nor his employees were licensed to practice law in Ohio.
The AG alleges that, although the attorney charged consumers initial set-up fees ranging from $1,000 to $3,000 and yearly fees for purported loan modification services, he failed to provide services as promised, and did not obtain loan modifications for consumers.
The complaint seeks a permanent injunction prohibiting the attorney and his law firm from continuing to offer such services in violation of Ohio state law; a declaratory judgment that each alleged practice violates state law; actual damages; and civil penalties of $25,000 per violation.