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08/01/12

In First, Consumer Agency Charges Law Firm with Duping Homeowners

The Consumer Financial Protection Bureau has filed its first ever civil enforcement action in federal court, charging a Los Angeles law firm of duping distressed homeowners into paying high upfront fees with false promises of a loan modification.

The complaint (PDF), which was filed July 18 and unsealed July 23 in U.S. District Court for the Central District of California, accuses Chance Gordon and his firm, The Gordon Law Firm, of charging thousands of dollars in advance fees and then doing "little or nothing to assist consumers." The agency secured an ex parte temporary restraining order against the firm at the time it filed the complaint.

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