(WIBW) - A Florida company must pay back nine Kansans for what authorities say was an illegal loan modification service.
Attorney General Derek Schmidt announced a consent judgment Friday against Defense Law Group, P.A.of Miami. Shawnee Co. District Court Judge Franklin Theis approved the judgment last week.
Under the order, Defense Law Group will pay $17,681 to nine consumers. The company also agreed to pay the costs of the attorney general’s investigation.
Schmidt's office said the company was not properly registered in Kansas and charged greater fees for its mortgage loan modification service than allowed under state law.
“Companies that offer services in Kansas are expected to comply with our laws governing those transactions,” Schmidt said. “Our office will continue to enforce those laws and protect Kansas consumers.”
In addition to payments, Defense Law Group will cease operations as a “credit services organization” in Kansas and comply with the Kansas Consumer Protection Act in all future transactions involving Kansas customers.
Schmidt says people should use caution when working with mortgage modification services, especially those that charge an upfront fee. Companies that engage in these services in Kansas are required to register with the Kansas Bank Commissioner.
For more information, visit www.ag.ks.gov.