Tennessee Attorney General Bob Cooper filed suit today to stop another Tennessee foreclosure rescue company and its principal from charging service fees to consumers and then failing to follow through with the services promised.

 

 

 

 

The lawsuit filed today alleges violations of consumer protection laws.

Attorney General Cooper on behalf of Mary Clement, director of the Division of Consumer Affairs, sued Patrick & Patrick, LLC doing business as Patrick & Patrick Loss Mitigation Services, and its principal, Denise Patrick, also known as Sondrette D. Patrick. 

The defendants are also doing business via the Internet at www.patrickandpatricklm.com.

 

 

 

 

“With the current economic crisis, we are concerned that homeowners across Tennessee may turn to “foreclosure rescue” operations that may fail to provide the services promised,” said General Cooper.  “In some cases, consumers have lost their homes to foreclosure despite promises that the defendants could save their homes.”

 

 

 

 

The State’s complaint, which was filed in Shelby County Chancery Court, also alleges violations of the Tennessee unauthorized practice of law statutes and the Tennessee Credit Services Businesses Act. 

Memphis Area Legal Services also filed a lawsuit today in Shelby County Chancery Court against the defendants.

 

 

 

 

Free certified foreclosure counselors are available to help consumers who are facing foreclosure in Tennessee.

A network of free certified foreclosure counselors is available to consumers by calling 2-1-1 or going to the Tennessee Housing Development Agency’s website at http://www.thda.org/foreclosure/counselors.pdf.

The Tennessee Housing Development Agency (THDA) is affiliated with the State of Tennessee. Consumers may file complaints about foreclosure rescue companies or other consumer issues by calling DCA or going online to www.tennessee.gov/consumer.

 

 

 

 

Director Clement added, “We don’t want vulnerable consumers who are facing foreclosure to spend money on what may turn out to be fraudulent services when free certified counselors are available to them. 

Consumers who have paid for foreclosure rescue services from Patrick & Patrick and Denise Patrick, and had problems should contact the Division of Consumer Affairs at (615) 741-4737 or 1-800-342-8385 (toll-free inside Tennessee).”

 

 

 

 

For more information on the lawsuit, please visit the Tennessee Attorney General’s website at www.tn.gov/attorneygeneral.

 

 

 

 

Some red flags of possible rescue scams include:

 

 

*Be concerned about a company that requires payment up front for services later. Also, be wary if a company will only take payment by cash, certified check or wire transfer even if the company claims the money will “go toward your mortgage.” Free services are available.

 

 

*Ask why a company needs your personal information if the company is asking for your personal information.

 

 

*A reputable company cannot generally guarantee that your home will be saved from foreclosure without knowing all of the circumstances involved.

 

 

*Beware of a company using high pressure to get you to sign a contract. Consider discussing any big decisions with someone you trust.

 

 

*Question anyone who makes an offer that seems too good to be true. Check with the Division of Consumer Affairs, Better Business Bureau and consumer groups to make sure the company is in good standing with the required credentials and licenses.