2nd Largest Foreclosure Law Firm in Colorado Sued

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Aronowitz & Mecklenburg, the 2nd largest foreclosure law firm in Colorado, is under investigation by Attorney General John Suthers. Suthers is currently investigating whether Aronowitz & Mecklenburg overbilled and “misrepresented its posting costs” while billing homeowners for foreclosure expenses, according to the Denver Post.

Aronowitz & Mecklenburg have been issued a subpoena and the investigation will target any possible “deceptive conduct.” This conduct brought to light the state’s consumer-protection act which is supposed to guard against such abuses. The plain facts involve pricing that was six times the market rate. The profits that the law firm has generated exceed $5 million, according to the court affidavit. No comment was given by Aronowitz & Mecklenburg.

  

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The lawsuit from Attorney General Suthers’ office asks for a detailed explanation of the charges. Aronowitz & Mecklenburg posts notices to homeowners advising them of their rights during the foreclosure process, and in doing so charges them $150 dollars. The firm has not given as many documents regarding the charges as the attorney general would like, and John Sutters’ office commented in court, “Aronowitz & Mecklenburg should not be able to charge such costs to the public but then refuse to provide the authority to charge these costs.”

As the attorney’s fees and costs are paid by the public they have a significant material impact; this is precisely why consumer protection is involved in this billing probe. The state of Colorado filed approximately 150,000 foreclosures between 2009 and 2012.