State penalizes companies for $300K in foreclosure scam

NEWARK, N.J. (AP) - Three companies and one individual have been penalized more than $300,000 for charging owners of foreclosed properties for services they didn't need.

The New Jersey Division of Consumer Affairs announced the settlements Thursday. The companies are Charlotte, North Carolina-based U.S. Financial Funding; Chicago-based Capital Recovery and Hunterdon Legal Service of Flemington, New Jersey.

Also included in the settlement was Jose Danoys of Old Bridge, who operated as JD Assets Recovery.

They allegedly charged thousands of dollars for helping homeowners obtain leftover funds from foreclosure sales.

State Attorney General John Hoffman says homeowners can apply for the funds themselves.

The penalties range from $36,000 against Danoys to $105,000 against Hunterdon Legal Service.

Some portion of the penalties will be refunded if the companies follow terms of the settlement for three years.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.