California Legal Remedies Act

The California Legal Remedies Act (“CLRA”) prohibits certain “unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods or services to any consumer.” Cal. Civ. Code § 1770(a). All over California, companies have engaged in four such prohibited practices: (1) using deceptive representations…in connection with goods or services, id. § 1770(a)(4); (2) representing that…services are of a particular standard, quality, or grade, id. § 1770(a)(7); (3) advertising…services with intent not to sell them as advertised, id. § 1770(a)(9); and (4) inserting an unconscionable provision in the contract, id. § 1770(a)(19).

Services are defined as “work, labor, and services for other than a commercial or business use, including services furnished in connection with the sale or repair of goods.” Cal. Civ. Code § 1761(b). Solicitations by these companies are clearly to provide loan modification services. Specifically, these companies seek a fee in exchange for providing representation, consultation, and advice in seeking a modification from a lender on an existing loan. Each of which constitute a service that is provided to your clients. As previously noted, the California Department of Real Estate recently stated “unless otherwise exempt, a real estate license is required to solicit, market, or provide loan modification, short sale and other loss mitigation services.” California Dep’t of Real Estate “Mortgage Loan Bulletin” Fall 2008 (emphasis added); see also Cal. Bus. & Prof. Code §§ 10131 & 10015; Jones v. Serrato, 2007 WL 2405811 (Ct. App. 2007) (finding Defendant liable for damages under CLRA for deceptive practices related to foreclosure prevention services) (unpublished).

Since, these companies offer loan modification services in a deceptive manner, in violation of the CLRA, plantiffs’ are seeking the full range of remedies allowed by the Act. This includes: actual damages, Cal. Civ. Code § 1780(a)(1); injunctive relief, id. § 1780(a)(2); punitive damages, id. § 1780(a)(4); attorneys’ fees, id. § 1780(d); and litigation costs, id.

Disclaimer: The foregoing is general legal information only and not intended to serve as legal advice or a substitute for legal advice. If you have been injured or damaged due to loan modification or real estate frauds go to www.ContingencyCase.com to see if there is a lawyer or attorney in your local area who is willing to take your case on a contingency fee basis. ContingencyCase.com is an online legal directory that allows Attorneys to advertise their availability to take all kinds of cases on a contingency fee basis (for example personal injury, eminent domain, contract cases, partnership disputes, etc.). Please note there are no guarantees that any attorney or lawyer will take your case. Copyright 2009 ContingencyCase.com – All Rights Reserved.