Texas law firm to give up foreclosure fees
CHARLESTON, W.Va. -- A Texas law firm agreed to stop charging West Virginians a fee for foreclosure assistance that was already free to them, Attorney General Darrell McGraw said Wednesday.
McGraw filed a complaint against Murray LLP, a law firm based in San Antonio, in Jefferson County Circuit Court in October. The complaint alleges Murray, through its website, www.bringaclaim.com, charged state residents a 20 percent fee to help them process claims for benefits under the National Mortgage Settlement.
Congress reached the National Mortgage Settlement with 49 attorneys general last year and ordered the nation's five largest loan providers to pay $21.5 billion in reparations and restitution to consumers victimized by illegal foreclosures.
The only requirement to receive the NMS payment of $1,500 to $2,000 was by completing a free, one-page form that was mailed directly to all eligible people from September to October, McGraw said.
He said Wednesday the law firm agreed to stop the service and add a disclaimer to its website advising its services are not available in West Virginia.
"I am pleased that we promptly achieved our objective which was to prohibit Murray from charging West Virginia consumers who lost their homes to foreclosure a fee for a benefit that was intended to be free," McGraw said in a news release.
McGraw's complaint also alleged that Murray's website was deceptive and attempted to hide the fee it charged for the service.
Reach Travis Crum at email@example.com or 304-348-5163.