Attorney General's News Release

September 3, 2004

Business that falsely promised to help delinquent homeowners will give refunds; more refunds may follow

Jefferson City, Mo. — A business that promises to help people avoid foreclosure on their homes will provide refunds to Missouri consumers who were required to pay for services up front, in violation of Missouri law. Attorney General Jay Nixon obtained an agreement with HomeSavers USA LLC, based in Charlotte, N.C., after consumers complained about the business.

One Missouri consumer learned of HomeSavers USA through a credit counseling service, another through a television ad. The consumers told the Attorney General that HomeSavers USA promised to work with their mortgage company to lower their payments and keep them afloat. The two Missouri consumers paid hundreds of dollars hoping this service would help them.

HomeSavers USA contacted the consumers' mortgage company and tried to work out lower payments, but was not successful in doing so. The consumers say they received nothing of value from their contract with HomeSavers USA.

HomeSavers USA agreed to pay $830 in restitution for the two consumers, one of whom is from St. Louis and the other from Wellington, which is in Lafayette County.

The agreement also provides for the Attorney General to seek restitution from the business for consumers who file proof within the next sixty days that they purchased foreclosure consulting services from HomeSavers USA and were either charged for those services before the work was fully completed or who did not receive three days to cancel the contract.

Consumers who believe they are due a refund should contact the Attorney General's Office at 800-392-8222 or www.ago.mo.gov. by Nov. 1.

In the agreement approved by Cole County Circuit Judge Richard Callahan, HomeSavers USA agrees to comply with the Missouri Merchandising Practices Act. This includes giving consumers three days to rescind a contract and asking for payment only after work has been completed.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818