State Obtains Preliminary Injunction Against Francha Services and Edna A. Francho

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REPORT FROM DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS – The Department of Commerce and Consumer Affairs’ (DCCA)  Office of Consumer Protection (OCP) has obtained a preliminary injunction against Francha Services, LLC and Edna A. Franco (“Franco”) for violations of Hawaiꞌi’s Mortgage Rescue Fraud Prevention Act and other consumer protection laws.  Maui Circuit Court Judge Rhonda Loo barred Franco from soliciting business from or contacting for any purpose Hawaiꞌi consumers who are owners of “distressed property,” continuing to act as “distressed property consultants,” and/or engaging in any “distressed property consultant contracts.”

Violations of Hawaiꞌi’s Mortgage Rescue Fraud Prevention Act and the laws prohibiting unfair and deceptive trade practices subject offending parties to fines ranging from $500 to $10,000 per violation.  

Act 183, signed into law by Governor Neil Abercrombie on June 28, 2012, now makes violations of the Mortgage Rescue Fraud Prevention Act a class C felony with a mandatory $10,000 fine.

The injunction, filed on July 25, 2012, also prohibits Franco and her business from directly or indirectly taking, asking for, claiming, demanding, charging, collecting, or receiving any money from any Hawaiꞌi consumers for any purpose until after Franco and her business has fully performed any services that they have contracted or promised to deliver and/or perform.

The suit against Franco and her business was filed in the Circuit Court of the Second Circuit, State of Hawaiꞌi.  It alleges that Defendants committed numerous violations of Hawaiꞌi’s Mortgage Rescue Fraud Prevention Act which, among other things, prohibits collection of fees before services are performed and requires a written contract spelling out the services and fees to be charged for such services.  The suit also alleges Franco’s company engaged in a pattern and practice of unfair and deceptive conduct and that Franco actively or passively participated in the violations.

Franco and her business targeted consumers on Maui, Oꞌahu and Hawaiꞌi Island, offering to save their homes from foreclosure.  The homeowners had to pay Franco in advance before she would help them and then did little if anything to complete any of the services she promised.

If members of the public are in default on their mortgage or facing foreclosure, the state has warned that they may be targeted by a mortgage rescue scam.  These mortgage rescue “professionals” use half-truths and deceptive tactics to sell services that promise relief to homeowners in distress.

Tips on Avoiding Mortgage Rescue Scams:
If you are looking for foreclosure prevention help, avoid any business that:

·        Promises it can stop the foreclosure process, no matter your circumstances
·        Instructs you not to contact your lender, lawyer or HUD-approved credit or housing counselor
·        Collects a fee before providing any services
·        Recommends that you stop making your mortgage payments
·        Recommends that you make your mortgage payments directly to it, rather than your lender
·        Pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand

Anyone who believes they have been victimized by a mortgage rescue scam, whether by the above Defendants or any other business, and have not filed a complaint with the State’s Office of Consumer Protection may call 587-3222 in Honolulu.

HUD-approved housing counseling agencies in Hawaiꞌi can provide advice on buying a home, renting, defaults, foreclosures, and credit issues for free.  If facing foreclosure, members of the public can locate a HUD-approved Hawaiꞌi housing counselor at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm/.  They may also call 888-995-HOPE (4673) around-the-clock for free, comprehensive foreclosure assistance from housing experts.

Landon Murata, an OCP staff attorney, represents the OCP in this action.

Comments

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16 COMMENTS

  1. Edna Franco-Background
    Notice to the PUBLIC!!!!
    I am a legitimate person whose bringing justice to the HOMEOWNERS or CONSUMERS who'se victimize with the wrongful foreclosures. I am providing useful information with attorneys who have fought and won cases in the State Court and the Federal Court using Securitization Audit. I am providing a Securitization Audit that Most Attorneys and Judges didn't understand. But the Department OF COMMERCE in Hawaii was not on my side to protect these HOMEOWNERS or CONSUMERS who needed help to save their special home!!! WE NEED YOUR HELP!!!! Atleast I helped so many homeowners keep their home for 4 years to 2 years and still living in their home until now….

    PLESE NOTE THAT I AM NOT A "DISTRESSED CONSULTANT"," I AM NOT A BROKER"" I AM NOT A REALTOR", "I AM NOT A MORTGAGE RESCUER", I DON'T TRUST MODIFICATION AND I AM NOT AN INVESTOR!!!

    SIMPLY I AM A CERTIFIED MORTGAGE FRAUD ANALYST OR CERTIFIED FORENSIC LOAN AUDITOR who provided a legal information to the Attorneys.

  2. I AM NOT A "FRAUD". LENDERS COMMITS SO MUCH FRAUD AND COMMIT SO MUCH CRIMES AND THEY CAN JUST GET AWAY WITH IT??? NO!!! HOMEOWNERS ARE FIGHTING BACK!!!! MOST ASSIGNMENTS OF MORTGAGE THAT THESE LENDERS CREATED ARE "INVALID" AND ILLEGAL AND THESE SERVICING COMPANY HAVE NO STANDING TO FORECLOSE! 45 STATES AND ATTORNEY GENERALS SUED BANKS FOR ILLEGAL AND UNFAIR DECEPTIVE ACT PRACTICES AND WON 25 BILLION DOLLARS, AND STATE OF HAWAII RECEIVED 71 MILLION DOLLARS!!! WHAT ABOUT US!!!! WE ARE THE HOMEOWNERS AND VICTIMIZED WITH THESE ILLEGAL FORECLOSURE AND THESE LENDERS WANTS US ON THE STREET. I HAVE CHILDRENS AND NEEDS A HOME!!!! HELP ME GOD!!!

    EDNA FRANCO

  3. Mahalo to our Judge Seabright that finally see things that's right! Atleast he's giving justice to the poor people and homeowners that seeking for justice….Finally, homeowners deserve better…than Wall Street and White Collar…I have been fighting with my own house since 2008 since this illegal foreclosure…and I am not paying these lender any dime….They already got paid in full!!! …..Edna A. Franco

  4. it's a lot of Conflict of Interest…If the DCCA is a member of Foreclosure Task Force and having a meeting with the Lender's Attorney's…What am I expecting…. too obvious… They don't care if I have a whole bunch of childrens to support… I need reward from the State for bringing the "TRUTH" about Lender's dirty tricks! These Servicing company and the Banks are commiting "FRAUD"! ……..They already settled 25 billion…But, where is the money?" Why do they need to shut down a private company like my company who truly helped hundreds of people?!!!! My people will petition soon…..

  5. and if the homeowners don't do something…Homeowners got run over all the time!!! Somehow these banks uses the power of money so they don't go to prison… I didn't do anything wrong…The banks are the one doing the wrong doing, with these mortgage backed securities fraud! Now, the federal government are suing Bank of America for 1 billion dollar for selling Fannie Mae and Freddie Mac a "TOXIC LOAN". What about homeowners, who approves loan with the "TOXIC LOAN"? People, think…think and think…People let's stand and help each other beat this Lenders who approves the loan with the "TOXIC LOAN" and who created a "BOGUS ASSIGNMENT OF MORTGAGE"!!!Let's Stand!

    Edna Franco

  6. TO ALL THE PEOPLE IN HAWAII AND HOMEOWNERS!!!! LET'S MAKE A WISH!!!!!!!!

    THIS HAPPENS ONLY ONE HUNDRED YEARS. I WANTED TO WISH YOU ALL SOMETHING VERY SPECIAL AT THIS MOMENT IN TIME. SO, AT 12 SECONDS PAST 12 MINUTES PAST 12 O'CLOCK ON 12 DAY OF THE 12TH MONTH OF 2012, (12:12:12 12-12-12-12) I WISH YOU LUCK, WEALTH, HAPPINES AND GOOD HEALTH…MAY OUR GOD ALMIGHTY BE WITH US ALL THE TIME…
    May this 12.12.12 I WILL TO ALL OF YOU TO BE RICH AS RICH AS YOUR HEART, HAPPINESS COME ALL THE TIME AND GOOD HEALTH AS YOU LIVE…..

    So, Happy Moments "Praise God"! Difficult Moments seek God, Quiet Moments worship God, Painful Moments trust God and every Moments THANKS GOD! So let US light a candle tonight, pray and wish at this date 12.12.12 at 12: midnight.

    So, let's make a wish each other that our dream will come true… Merry Christmas in advance!

    EDNA FRANCO 12/12/12

  7. So Mark Watson did you get your Mortgage Discharged? If so was it through Quiet Title Action? Or did you just get your case dismissed?

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