August 13, 2009
Jefferson City, Mo. -- Attorney General Chris Koster has sued another business that promised foreclosure relief and mortgage modifications, but did not deliver services as promised.
Koster sued Premier Credit Services (PCS) of Kansas City, and its principals, Michael Eads and Angela Eads, for mortgage fraud. Koster said the Eads would promise homeowners facing default or foreclosure lower house payments or lower interest rates. Premier Credit and the Eads also offered to repair consumers' credit histories, promising to boost their credit score by 100 points. Koster said Eads charged consumers up-front payments, which is against Missouri law.
"The Eads and Premier Credit knowingly deceived Missourians who were facing financial difficulties and even foreclosure, leaving them in worse financial shape," Koster said. "This Attorney General's office has zero tolerance for any foreclosure consultant and credit repair firm that takes consumers' money without providing the services they promised. We will continue to fight to stop these scams and seek restitution for those they cheated."
Koster said the Eads sought customers using deceptive direct-mail advertisements that appeared to come from the federal government. The letter insinuated that the recipient might be eligible for mortgage modification under "HR 5140 Government Economic Stimulus Act of 2008." The Attorney General received one of Premier Credit's pitches, which he shared with his Consumer Protection Division to investigate for deceptive advertising.
Koster is asking the court to award restitution to consumers who suffered losses; impose appropriate monetary penalties; and issue injunctions prohibiting Premier Credit Services from violating Missouri consumer protection laws in the future.
Koster has declared a "zero tolerance" campaign against mortgage fraud in Missouri. Since April 6 he has filed suit against six companies, including Premier Credit, offering mortgage refinancing or foreclosure relief. His office currently has more than a dozen additional official investigations currently underway.
Koster urged Missourians to be skeptical when receiving any mail regarding home-financing issues. He said consumers should check with their bank or call the Attorney General's consumer hotline at 800-392-8222 or go online at ago.mo.gov if they are unsure about an offer's validity.