SALEM -- The state of Oregon is suing a California loan modification company for taking fees from 33 Oregon families and refusing to issue refunds when it didn't provide the services it promised.
The lawsuit alleges that NOD Consultants misled Oregon homeowners by collecting approximately $90,000 in fees and failing to provide loan modifications, according to Tony Green with Attorney General John Kroger's office.
The lawsuit was filed September 29, 2011 in Clackamas County Circuit Court, Green said.
"Since November, 2009, at least 34 Oregonians have become clients of NOD Consultants," Green said, "after company officials led them to believe they would successfully obtain loan modifications on their behalf."
Green said most of NOD's clients were current on their mortgages, but were advised to skip at least one payment, which the company said would encourage their lenders to renegotiate.
The complaint alleges the company took advance fees between $725 and $2,950, Green added, which violates an Oregon law that caps advance fees at $50.
NOD allegedly failed to obtain loan modifications for 33 of its 34 Oregon clients.