Couple Says Loan-Modification Firm Scammed Them
CHICAGO (CBS) -- A Chicago company has been busted for cheating homeowners out of thousands of dollars.
The city says the company promised to help people modify their home loans but took their money instead, CBS 2's Pamela Jones reports.
"It sounded good. It was a way out," is how Allen Woodards describes the pitch he heard from E.A.C. Financial LLC.
But the deal ended up threatening their home and their future.
Back in 2009, they say E.A.C. Financial called them and offered a loan modification -- a better payment for their mortgage that could get them back on track.
"We never did get a modification," Allen Woodards said.
He and his wife say they visited the company office near 99th and Western Avenue, where the company reportedly charged up to $2,000 for the help.
"They told us we would need $1,500 to get that started," Allen Woodards said.
But city documents reveal the company cheated him and six other victims by keeping their cash and giving no modification help in the end.
The city's Department of Business Affairs and Consumer Protection investigated and decided to send a message to companies like E.A.C. Financial.
"We will find you and we will bar you from doing business here," Commissioner Norma Reyes said.
Now, E.A.C. Financial is shut down after surrendering its business license. And the Woodards say the city helped them find a real loan modification.
"We thank God for putting us in the right place with the right people," Louise Woodards said.
A court order means that E.A.C. Financial and the people who ran it must pay all the victims back, plus fines to the tune of more than $63,000.
The city also learned that company has been operating out of Matteson, so there may be even more victims out there.
If you think you've been a victim of a scam, call 311 in Chicago. To learn more about the city's efforts to crack down on companies like E.A.C. Financial, click here.
