New York Attorney General Eric Schneiderman filed a lawsuit against two law firms Wednesday, alleging they duped 2,700 homeowners out of hundreds of dollars a month in specious legal services.
The two firms have ads running frequently on late night TV claiming the government may have "satisfied in full" a homeowner's mortgage.
After hearing the ad, Schneiderman personally called the law firm to inquiry about their services. His office says he was then bombarded with aggressive marketing trying to get him to purchase legal services to help with a home loan modification. The lawsuit alleges those services were valueless and rarely led to loan modifications.
The two firms are Litvin Law Firm, based in New York, and Litvin, Torrens, & Associates, based in Florida.
In a statement, the companies denied the allegations and called the suit excessive regulation.
According to the suit the firms have customers across the country even though they are only allowed to practice in New York and Florida.
The companies also have cease and desist orders against them in states around the country, including Connecticut.
Both Connecticut and New York offer free legal counseling to homeowners seeking loan modifications .
