A Florida court on Friday sided with the Consumer Financial Protection Bureau and the state over claims that a law firm charged illegal fees to consumers seeking foreclosure relief, National Mortgage Servicing News reported today. The Southern District Court of Florida found Hoffman Law Group, a firm in North Palm Beach, Fla., and its affiliates liable for $11.7 million in illegal upfront fees. The lawsuit said that the firm charged consumers for foreclosure mitigation services that often went nowhere. In addition to the liability, the firm was ordered to pay a $10 million civil money penalty to the CFPB, and a $6 million penalty to the state. However, much of the penalty appears to be uncollectable. A receiver appointed by the court to take charge of the company will pay $655,737, which is the remainder of the Hoffman Law Group and its affiliates' assets. The state and the CFPB last year had obtained a temporary restraining order and asset freeze against the companies.
