Don, Response to post #170
check out or paste this in to your web browser for the NC Times article.
Agents with the FBI, the Internal Revenue Service and the State Bar of California served search warrants Wednesday at two related Oceanside loan modification businesses.
The raids took place at the First American Law Center, 615 Mission Ave. in downtown Oceanside, and the Lead Source, 2101 El Camino Real.
FBI officials said there were no arrests Wednesday, and they declined further comment.
Dean Chandler, president of the First American Law Center, said he was in Arizona when his office was raided. He said he had not been contacted by agents, and he was not sure why his business was being investigated.
"We run a very clean shop," Chandler said during a telephone interview.
He said his year-old business places national ads offering to help troubled homeowners modify their loans.
Of about 2,000 people who have contacted the firm for help getting their monthly housing payments reduced, the firm has succeeded in helping 500, he said.
However, numerous Internet consumer review sites contain allegations from unhappy customers that the business is a "scam," pocketing an advanced fee, then failing to return calls or help with loan modifications.
Chandler said those allegations were false. He said the company has a money-back guarantee on its $3,495 loan modification service, and it has returned more than $1 million since opening in April 2009. The company keeps a $600 processing fee in every exchange, whether or not a loan can be modified, he said.
The company recently stopped asking for payment upfront in California, because of a new law that bars the practice, he said.
Chandler is an attorney who was admitted to the California Bar in 1992, according to the California State Bar's website. He has never had any action against his license, according to the site.
Second half on next post — August 3, 2010 11:12 a.m.