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 https://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. First and foremost, who's doing modification? How can the banks modify the loan if the "ASSIGNMENT OF MORTGAGE ARE FRAUD"? WHO'S AIDING AND ABETTING FRAUD?

  2. •"The lender Promises "WE'RE HERE TO HELP" , so fill out th emodification packet" it can stop the foreclosure process, we understand your difficulties.
    But, theese lenders just give people run around or say, "sorry you are not qualified"!!!
    • Call HUD- for for housing counselor – But you called and put you on phone forever!
    • Sort sale your property it prevents from foreclosure
    But you are giving your home away!
    • Do Mediation Program….
    How can the Lender modify loan if the Investors or Creditor who files suit for foreclosure uses the uses the BOGUS Assignment of Mortgage?" PEOPLE NEED JUSTICE!!! NOT ONLY FOR THE RICH PEOPLE, BUT ALSO FOR THE POOR PEOPLE! Give me a break!

    • You are the very one to talk. You've scammed me and several others here on Kauai as well.
      We sent you emails, text and even call you, you never respond or return our text, emails, or phone calls! Your voicemail is ALWAYS full, so we can't leave any messages!
      You make promises that you're going to fly to Kauai to meet with us, and you never came!
      You make broken promises!
      you've ask for us to pay you up front before you can even start working on our distressed property issue!
      Now you have included others to assist you, so you can blame them, and they will take the fall, not you!
      You are passing them your problems, and they're unaware you are forwarding people to them in the first place!
      You are a bogus, phoney, scammer!
      I want my full refund back! You just pray on desperate people, who want to save their homes and who are willing to do anything to do it!
      Shame on you!

    • Come on….why don't you reply? It seems you spend all of your time on this site….maybe thats why you dont return our calls, text, & emails. I wonder what your hiding from? you took $3500.00 of my hard earned cash to pay for your services, which you didn't do a thing! no wonder you insisted on Money Order in YOUR name.
      what did you do w/my money? why cant you refund my $3500.00? you probably used my money to get yourself out of your own debt. thats why you dont have it.
      YOU are a BOGUS Certified Forensic Loan Officer!!! You should call yourself a Forensic Loan Scammer!!!!

      People, BEWARE, she is a total scam.
      She does take your money and run! she doesnt care about you after she receives your payment in full. n always give people the run around! she doesnt practice what she preaches!

  3. I'm surprised that Francha Services, LLC was not shut down in the first place. They are just capitalizing gains from distressed mortgage homeowners.

  4. Hi,
    I'm still waiting patiently for my securitization letter since April 2012 but I received nothing? If fraud is found on my mortgage than may I please get a copy of my letter, soon! If lenders are being corrupt, why should I pay my mortgage. I need proof of evidence, I need a peace of mind, I need to know. Please send soon. TY

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