A U.S. District Court today granted the CFPB andthe State of Florida a final judgement against Hoffman Law Groupand affiliated companies for what the agency said was usingdeceptive marketing practices and scamming consumers.

According to agency, the North Palm Beach, Fla. companiestricked consumers into paying illegal advance fees and joiningfrivolous lawsuits that the companies said would pressure banks tomodify underwater home loans or provide foreclosure relief.

The U.S. District Court for Florida's Southern District foundthe corporation and its affiliates liable for more than $11.7million in fees illegally charged to consumers and further orderedthe companies to pay $10 million to the CFPB and additional finesto the State of Florida.

“These companies preyed on vulnerable consumers who were tryingto save their homes from foreclosure,” CFPB Director RichardCordray said. “The false promises made by these companies luredstruggling homeowners into scams that led to greater financialhardship. We are working to protect consumers from illegalpredatory practices by holding bad actors accountable for theiractions.”

Florida Attorney General Pam Bondi added, “Scamming homeownersworried about losing their homes is not only illegal, it isdespicable, and thanks to the great work of my consumer protectiondivision and the CFPB, these defendants will pay for preying onFlorida homeowners facing foreclosure. Foreclosure rescue scammerscannot evade the law by hiding behind a law firm. It isdiscouraging that there are attorneys out there that will allowtheir licenses to be used by shady companies to target peoplefacing foreclosure.”

According to court documents in the case, the firms collectedfees from consumers before actually obtaining a modification oftheir loans; misrepresented the homeowners likelihood of success inobtaining a modification; duped consumers into thinking they wouldreceive legal representation and actually discouraged homeownersfrom communicating with their lenders or servicers, claiming thecompanies would handle all such communication.

Under the court order, more than $655,000 will go to the CFPB torepay victims of the scams, and the court suspended the balance asuncollectable and ordered personal effects from executives who ranthe companies to be auctioned to help repay victims.