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United States Law Center; 3720 Spruce St; Ste 188; Philadelphia, PA 19104 - Cease and Desist Order and Affirmative Order for Sanctions
December 6, 2013
WHEREAS the Bureau of Consumer Credit Protection (the Bureau) is an agency of the State of Maine authorized and designated to administer the Maine Consumer Credit Code, Title 9-A of the Maine Revised Statutes, and the Maine Debt Management Services Act, 32 M.R.S. ?? 6172-6183; and
WHEREAS the Superintendent of the Bureau, acting as the administrator of the Maine Consumer Code and the Maine Debt Management Services Act, has determined that notice and hearing need not be provided prior to the issuance of a cease and desist order based on the need for immediate action to protect the public interest, pursuant to 9-A M.R.S. ? 6-108(1); and
WHEREAS Respondent United States Law Center has engaged in activities or offered to assist consumers for purposes that are within the ambit of debt management services as defined by 32 M.R.S. ? 6172(2)(A)-(D), as further specified below; and
WHEREAS Respondent United States Law Center is not registered by the Bureau as a debt management service provider, and does not possess a surety bond, pursuant to 32 M.R.S. ?? 6173(2), 6174; and
WHEREAS on July 8, 2013, the Bureau received a complaint from C. M., of East Waterboro, Maine, and the Bureau staff thereafter spoke to C. M. and learned the following:
- The United States Law Center, representing itself as ?attorneys at law? and as ?a professional law corporation,? mailed C. M. an offer of assistance in his dealing with a possible foreclosure of his residence;
- On or about May 23, 2013, C. M. signed and faxed to the United States Law Center paperwork by which he entered into what the United States Law Center described as an ?attorney-client relationship?;
- As a part of his written agreement with the United States Law Center, C. M. agreed to make four payments of $925 each to the United States Law Center, by ACH withdrawal, between May 31, 2013, and August 30, 2013, upon the completion of specified services;
- In return, the United States Law Center promised, among other things, to ?use our best efforts to perform our agreed upon services,? which included taking numerous steps up to and including analyzing C. M.?s circumstances, collecting and submitting documentation to C. M.?s mortgage lender, negotiating with the lender in good faith, resubmitting a loan modification proposal if C. M. were denied relief for a specific program, and communicating to C. M. all modification terms, or alternatives, as proposed by the lender;
- The agreement with the United States Law Center signed by C. M. gave him ?the right at any time to terminate our services upon written notice to us,? and obliged C. M. to pay only ?the fees due for services rendered prior to such termination?;
- The services that the United States Law Center was required to complete before any money was withdrawn from M. C.?s bank account were: performing a financial consultation, analyzing the terms of his current mortgage loan and comparing them to current market conditions, evaluating the hardship affecting his ability to pay his mortgage, requesting supporting documentation from M. C., applying underwriting criteria to his circumstances, analyzing documentation submitted by M. C., reviewing M. C.?s financial worksheet to evaluate his difficulty in paying his existing mortgage, communicating with M. C. about this preliminary assessment of the information submitted, and preparing necessary documents;
- On May 31, 2013, the United States Law Center withdrew $925 from C. M.?s bank account without any, or all, of these steps having been taken; and
- On June 3, 2013, C. M. notified the United States Law Center that he had ?decided to terminate my contract with USLC as of 5/31/2013? after choosing instead to rely on a local Maine attorney and HUD counselor for assistance; and
WHEREAS on July 15, 2013, Bureau staff wrote the United States Law Center to demand that it repay C. M. the $925 it had withdrawn from his bank account, and to inform the United States Law Center that its work brought it within the ambit of the Maine Debt Management Services Act and that it was acting in violation of the Act; and
WHEREAS the United States Law Center received delivery of the letter referred to in the preceding paragraph, but then blacked out its mailing address, and wrote ?RtS? on the envelope, after which the Bureau received back its July 15, 2013, letter on July 23, 2013; and
WHEREAS on November 4, 2013, Bureau staff wrote a letter to Daniel G. Ruggerio, Esq., a licensed Maine attorney whom the staff had learned was a part of the United States Law Center?s ?attorney network,? and enclosed its letter of July 15, 2013; and
WHEREAS the letter just referred to, mailed to Ruggerio at his address listed in the Maine bar directory, was returned to the Bureau on November 11, 2013, with instructions to ?return to sender? and as ?not deliverable as addressed? and ?unable to forward?; and
WHEREAS on October 31, 2013, the Bureau received a complaint against the United States Law Center from J. S., of Wiscasset, Maine, and the Bureau staff thereafter spoke with J. S. and learned the following:
In the spring of 2013 J. S. hired the United States Law Center to work on obtaining a loan modification for him;
The United States Law Center advised J. S. not to pay his mortgage, but instead it pay it;
In consequence thereof, J. S. made four payments of $925 to the United States Law Center, starting on April 11, 2013;
The United States Law Center in an undated communication to J S. sent him a notice that it needed to have J. S. provide certain documentation and forms to ?submit a complete package to your lender? ?for us to achieve the best results?;
The United States Law Center accomplished nothing for J. S., and on July 13, 2013, J. S. was served with a foreclosure complaint; and
The undated communication referred to in paragraph 4, just above, included a listing of the United States Law Center?s ?attorney network,? including, as its Maine attorney, Daniel G. Ruggiero, Esq.; and
WHEREAS on November 4, 2013, the Bureau staff, as a part of the same letter referred to above in the statement of allegations concerning the matter of C. M., wrote to Ruggiero to demand the return of J. S?s $3,600 and, as before, to state that the United States Law Center was continuing to act in violation of the Maine Debt Management Services Act; and
WHEREAS that letter was returned to the Bureau, as noted above in the statement of allegations concerning the matter of C. M.
NOW THERERFORE it is hereby
ORDERED that United States Law Center shall forthwith cease and desist from engaging in conduct, or offering to perform on behalf of any Maine consumer any service, within the ambit of the Maine Debt Management Services Act, 32 M.R.S. ? 6172(2)(A)-(D), pursuant to 9-A M.R.S. ? 6-108(1), unless or until United States Law Center is properly registered to perform or to offer such services; and it is further
ORDERED that United States Law Center shall, within 14 days of the date of this Order, pay to the ?Treasurer, State of Maine? $925, pursuant to 9-A M.R.S. ? 6-108(1), for the purpose of refunding to C. M. the money he paid to the United States Law Center, for which no services were provided and which were collected by the United States Law Center at a time when it was not registered under the Maine Debt Management Services Act; and it is further
ORDERED that United States Law Center shall, within 14 days of the date of this Order, pay to the ?Treasurer, State of Maine? $3,700, pursuant to 9-A M.R.S. ? 6-108(1), for the purpose of refunding to J. S. the money he paid to United States Law Center, for which no services were provided and which were collected by the United States Law Center at a time when it was not registered under the Maine Debt Management Services Act; and it is further
ORDERED that United States Law Center shall, within 14 days of the date of this Order, pay to the ?Treasurer, State of Maine? $1,500 in civil penalties for having contracted with C. M. while not being registered under the Maine Debt Management Services Act to do so, pursuant to 10 M.R.S. ? 8003(5)(A-1)(3); and it is further
ORDERED that United States Law Center shall, within 14 days of the date of this Order, pay to the ?Treasurer, State of Maine? $1,500 in civil penalties for having contracted with J. S. while not being registered under the Maine Debt Management Services Act to do so, pursuant to 10 M.R.S. ? 8003(5)(A-1)(3); and it is further
ORDERED that United States Law Center shall, within 14 days of the date of this Order, pay to the ?Maine Bureau of Consumer Credit Protection? $2,000 towards the reasonable expenses, necessarily incurred, of its investigation and prosecution of these matters, pursuant to 9-A M.R.S. ? 6-106(6) and 32 M.R.S. ? 6178(3).
BY ORDER OF THE SUPERINTENDENT OF THE BUREAU OF CONSUMER CREDIT PROTECTION
| Date: December 06, 2013 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |
NOTICE OF APPEAL RIGHTS
Any party to this proceeding aggrieved by this Order may, within 30 days of the receipt of this Order, file a request for an adjudicatory hearing pursuant to 5 M.R.S. ?? 9051(2), 9052(1)(A), at which the aggrieved party shall have the opportunity to prepare and submit evidence and argument. If no request for a hearing is timely made, the terms of this Order shall become final and binding at the end of the 30-day period. Any party to this proceeding aggrieved by this Order may thereafter seek judicial review of the Order pursuant to 5 M.R.S. ?? 11001-11008 by filing a petition for review within 30 days after receipt of notice. Any other person aggrieved shall have 40 days from the date the Order was rendered to petition for review.
| Date: December 06, 2013 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |