San Diego, CA: A class action lawsuit was filed on September 29, 2010 in San Diego Superior Court on behalf of a nationwide class of consumers against First American Law Center, Inc. ("FALC") of Oceanside, California and San Diego attorney Dean G. Chandler.
The lawsuit, brought by couples from Glen Ridge, N.J. and Bakersfield, CA, alleges that FALC and its founder, Chandler, charge consumers upfront fees in connection with loan modification services before the loan modification services are completed. The lawsuit states that the practice violates a year-old law, California Civil Code Section 2944.7.
The California legislature enacted Section 2944.7, effective October 11, 2009, in response to increasing consumer complaints about loan modification scams. Section 2944.7 prohibits persons offering to perform a mortgage loan modification from charging any compensation until after the person has fully performed each and every service to which the person agreed.
FALC did not obtain a modification of either couple's loan and neither couple received a refund from FALC despite their requests. The lawsuit seeks to recover at least $2 million in loan modification fees for the class.
