In 2014, the CFPB filed a lawsuit against Clausen & Cobb Management Company for “falsely promising to lower an interest rate or stop a foreclosure.” The action was part of a larger effort to target firms that “charged distressed borrowers millions of dollars in fees without following through on service.”

• “Two federal agencies and 15 states have taken more than 40 actions against foreclosure relief operations, alleging the firms charged distressed borrowers millions of dollars in fees without following through on service. The actions jointly announced Wednesday by the Consumer Financial Protection Bureau, the Federal Trade Commission and the states are part of an ongoing enforcement sweep dubbed Operation Mis-Modification_ The CFPB has already filed three suits against companies and individuals over a combined $25 million in illegal fees.” [Rachel Witkowski, “Dozens of Mortgage Relief Firms Cited by CFPB, States Over Mod Scams,” American Banker, 07/24/14]

• “Most of the actions relate to firms charging upfront fees and falsely promising to lower an interest rate or stop a foreclosure. For example, in one of the lawsuits filed by the CFPB, the agency alleges that Clausen & Cobb Management Company charged individuals upfront fees between $1,995 to $3,500, and a monthly fee of $495 to thousands of California homeowners.” [Rachel Witkowski, “Dozens of Mortgage Relief Firms Cited by CFPB, States Over Mod Scams,” American Banker, 07/24/14]