Call Kurtis: Troubled Company Promises To "Settle" With Customers

FOLSOM (CBS13) -- A company offering lower house payments to homeowners is no longer operating, and will be working with individual clients to settle any requests for refund, an employee told Call Kurtis Monday.

"We're not going to do any of this anymore," said Karen Whigham, who works with husband Stan Whigham.

The Better Business Bureau put out a warning Thursday about Universal Housing of California, a company that accepted money from customers who wanted lower house payments.

Sally Fuller of Sacramento said she paid the company a $895 for her loan modification, which Universal Housing agreed was never completed. Now the company won't honor the satisfaction-guaranteed refund it promised, she said.

"Now they don't answer calls, they don't answer emails," she said. "They're cockroaches."

Fuller is one of four customers who have complained to the BBB, saying they paid Universal Housing of California $795 to $895 after being promised their house payments would drop.

But they told the BBB the company never helped them.

"To prey upon the unfortunate, people who are already circling the drain and fearful of losing everything -- to prey upon those people is the lowest form of unforgiveable behavior," Fuller said.

Call Kurtis learned Stan Whigham, listed as the executive director on the company business cards, was in trouble with the state and surrendered his license with the Department of Real Estate in 2011 for similar practices.

After Call Kurtis got involved, Karen Whigham said she had sent Fuller a refund of her money via USPS.

Universal Housing of California, which operates out of a Folsom office, said it is a nonprofit, allowing them to take money up front, but the Department of Real Estate said it's illegal for any company or nonprofit to take money up front if helping with a loan modification, under California Civil Code Section 2944.7.

Call Kurtis could not find any record of the nonprofit with the Internal Revenue Service, indicating the company may be operating without proper licensing.

Whigham insisted the company had filed all necessary paperwork, but refused to share her organization's Employer Identification Number (EIN) -- which is public information. She said she is contacting the IRS to determine why the company is not currently registered as a tax-exempt nonprofit, she said.