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ROY
COOPER
ATTORNEYGENERAL
KenMcCurd
Lender Exchange, Inc.3325 Washburn AvenueCharlotte, NC 28205Dear Mr. McCurd:
State
of
North
Carolina
Department
of
Justice
900
I
Mail
Service Center
Raleigh, NC
27699-9001
November 17, 2008RE: File No. 0811910Carolyn SwannPO Box 3Yanceyville, NC 27379
~
CONSUME~OTECTION
Toll
FreeIn
NC
(877)
566-7226
Outside
of
NC
(919)
716-6000
Fax:
(919)
716-6050
We
have received a complaint against your company
by
the above referepced individual.A copy
of
the complaint is enclosed for your review.
We
have very serious concerns regarding the complaint filed
by
Carolyn Swann. Inparticular, the information we have received indicates that your company may be providingunlawful "foreclosure rescue" services and requests payment
of
an advance fee for these services.Ms. Swann states that she and her husband contacted Lender Exchange in July 2008 forassistance in saving their home from foreclosure. Ms. Swann states that in September 2008, sheand members
ofher
church paid Lender Exchange a total
of
1,850.50 for foreclosure assistanceservices only to find out that her house had already been sold two months prior.
For
your information, in 2005, the North Carolina General Assembly enacted Senate Bill590, entitled
"An
Act to Further Protect Consumers Seeking Assistance With Managing TheirDebts." Among other provisions, the new law expanded the definition
of
"debt adjusting,"defined in North Carolina General Statute § 14-423(a)(2), to include:"the business
or
practice
of
debt settlement or foreclosure assistance whereby any personholds himself or herself out as acting for consideration as an intermediary between adebtor and the debtor's creditors for the purpose
of
reducing, settling,
or
altering theterms
of
the payment
of
any debt of.the debtor, whether
or
not the person distributes thedebtor's funds
or
property among the creditors, and receives a fee
or
other considerationfor reducing, settling,
or
altering the terms
of
the payment
of
the debt in advance
of
thedebt settlement having been completed or
in
advance
of
all the services agreed to having
been
rendered in full."
 
Lender Exchange, Inc.November 17,2008
Page2
Accordingly, under this new law, effective December 31,2005, any foreclosure assistancebusiness that collects a fee in advance from any North Carolina consumer prior to the servicesbeing fully performed, is engaged in illegal debt adjusting. There are criminal and civil penaltiesfor violations
of
the debt adjusting law.Based on the materials provided to us from Ms. Swann, there is good cause to believe thatyour foreclosure assistance business is operating in violation
ofNorth
Carolina law. To theextent you are providing these services to North Carolina consumers, you are requested toimmediately
cease and desist
from offering or providing foreclosure assistance services
to
NorthCarolina consumers and from the collection
of
any advance fees from North Carolina consumersfor foreclosure assistance services. Please be advised that the North Carolina Attorney Generalhas enforcement authority to seek injunctions, recover refunds for consumers, and to obtain civilpenalties against anyone violating the debt adjusting law.
We
request that you provide an immediate refund to Ms. Swann
in
the amount
of
$1,850.50 and that you respond to this office with written confirmation that the refund has beenmade. We further request that you state your intentions with regard
to
compliance with NorthCarolina law. Please be advised that failure to respond within the next ten (10) days or receipt
of
additional complaints against your company will result in a formal investigation. Whensubmitting your response, please refer to File No. 0811910.InvestigatorCONSUMER PROTECTION DIVISIONEnclosure:cc: Carolyn Swann
 
ROY
COOPER
ATTORNEY GENERAL
KenMcCurd
Lender Exchange,
Inc.
3325 Washburn AvenueCharlotte, NC 28205Dear Mr. McCurd:
State
of
North
Carolina
Department
of
Justice
900
I
Mail
Service Center
Raleigh, NC 27699-9001
July 24, 2009RE: File No. 0910145Dale Robinson1708 Parkdale A venueGastonia, NC 28052
CONSUMER
PROTECTIONToll
Free
In
NC
(877)
566-7226
Outsideof
NC
(919)
716-6000
Fax:
(919)
716-6050
We
have received another complaint against your company by the above referencedindividual. A copy
of
the complaint is enclosed for your review.It appears
that
Mr. Robinson, through his own representations and those
of
his legaladvocate, has paid Lender Exchange $872 for loan modifications services which were neverprovided. He is requesting a refund
of
his money. Further, you have previously been advisedthat payment
of
an
advance fee for loan modification services is a violation
of
North Carolina'sdebt adjusting statute. A fee cannot be charged prior to all services being fully performed. Thereare civil and criminal penalties for violations
of
the debt adjusting statute.
I
also have enclosed copies
of
correspondence from Mr. Robinson's legal aid advocate,
Mr.
Mike Fulkerson, and our previous letter to you, dated November 18, 2008, which detail theserious nature
of
these complaints. Ms. Swann has yet to receive her promised refund
in
theamount of$1,850.50 for foreclosure assistance services. Now we have received a complaintfrom Mr. Robinson. Again, he has been promised a refund
of
$872 but has yet to receive even areturn phone call to representatives from North Carolina Legal Aid. Upon review
of
thecomplaints filed with our office, both consumers have incurred serious harm by having to filebankruptcy or lose their home
to
foreclosure following their contact with Lender Exchange forloan modification or foreclosure prevention assistance.
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