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Mortgage loan company to refund customers

Updated: Monday, 20 Dec 2010, 6:02 PM EST
Published : Monday, 20 Dec 2010, 6:02 PM EST

CHESAPEAKE, Va. (AP) - A Chesapeake-based mortgage loan modification company will refund more than $94,000 to customers as part of a settlement with the state.

Virginia Attorney General Ken Cuccinelli announced the settlement with American Neighborhood Housing Foundation on Monday.

Cuccinelli claimed in a lawsuit that the company charged illegal advance fees for so-called "foreclosure rescue" services, and that some of the company's practices were deceptive.

In addition to the refunds to 273 consumers, the company will pay a $5,000 civil penalty and reimburse the state $10,000 for attorneys' fees and costs.

A woman who answered the phone at the company's Chesapeake office and refused to give her name said the company had no comment.

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