Complaint Review: Fairbanks Capital

I have been searching all day for an answer on the hearing that took place today. I have been sold off to another company of which Fairbanks has done it to me again. They sold our loan and when I called them to make sure they received last months payments ( because I just have to after what My family has been through with the crazy Fairbanks).

Anyway They informed me today that Fairbanks told them I haven't made a payment since last sept.2003. My stomach is sick. I cannot beleive they could even sleep at night knowing what they are doing to us. The new company told me I better talk to my attorney because they are starting forecloser. OMG!!!!!

I have all my recipts from money orders I wouldn't write them a check.. Also All the return recipt requests that I have mailed to them along with my payments. I'm blown away.

Anyway just wanted to share something I found while searching it's a statement from Marylands senator Please read and get a little satisfaction....

Contact: Jesse Jacobs
For Immediate Release
(202) 224 4524

November 12 , 2003
http://sarbanes.senate.gov

STATEMENT OF SENATOR PAUL S. SARBANES (D-MD)

SETTLEMENT WITH FAIRBANKS CAPITOL

I am delighted to be here along with my colleague, Senator Mikulski, for this very, very important announcement.

First I want to congratulate Chairman Muris and the rest of the commissioners and their very able staff, particularly Joel Winston and Lucy Morris, for their aggressive support of this very important case. And I also want to thank Secretary Mel Martinez and the Inspector General of HUD, Ken Donohue, for their role in this matter.

We've seen the devastating consequences of predatory lending in many communities throughout the nation. Predatory lenders target vulnerable people with equity in their homes for loans they so oftentimes cannot repay, and then they strip out the equity by financing in high points and fees into the loan, collecting prepayment penalties when the borrowers try to refinance out of these problems.

In the past year or so -- and this is what this case involves -- we've seen another side of this problem which has been called to our attention, and that is predatory mortgage servicing. These are servicers, generally of subprime mortgages, that engage in a set of bad practices that are designed to push homeowners into delinquency and default, and in many cases resulting in foreclosures.

Fairbanks Capital was one of the worst offenders in this regard, with whom the settlement is being reached.

We've received thousands of complaints from Marylanders and others around the nation about Fairbanks, including that they routinely force placed high-cost homeowners insurance on borrowers despite receiving evidence that the borrowers already had insurance; that they would delay -- delay posting mortgage payments so that they could charge late fees. The payment would be made in time, it just wouldn't be posted in time, and then they would say, "Well, you didn't meet the deadline. We're charging you a late fee," often pushing the borrower into default.

They would hire attorneys to collect payments which the company had falsely claimed the homeowner had failed to make, and then they would charge the homeowner for attorneys' fees. Now, they even charged homeowners for bogus and excessive property inspections, or other so-called property preservation fees and appraisals.

And the list goes on and on.

But it was all very carefully worked out to really prey upon people. And I am particularly grateful to the Baltimore Community Law Center and Diane Cipollone, who did such a good job of documenting these abuses which we were able to bring to the attention of the FTC and of the Secretary.

The settlement, of course, provides for significant monies for restitution of the victims of these abusive practices, to actually levy a significant penalty on the former CEO, a personal penalty on the former CEO, and perhaps even more importantly, it lays out a set of policies that Fairbanks will have to adopt that should put an end to these abusive practices.

The FTC and HUD will seek to make restitution to those who have been harmed by these practices heretofore, and of course they will be involved in a continuing effort to make sure that the practices are put to an end.

This settlement should also serve as a warning to other mortgage servicers that to seek to take advantage of homeowners with these kinds of unscrupulous practices will no longer be tolerated.

I've been very pleased to work with my colleague, Senator Mikulski, on this pressing issue. We heard about because our own constituents were being affected. As we looked into it, we discovered it was taking place across the country. And we look forward to working with the FTC and with HUD to ensure that this order that's now being entered is followed and fully implemented.

The implementation of this agreement now, compliance with it is extremely important. And we also believe it will send a very firm warning to other bad actors that they better change their practices -- now, at once.
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Please pray for anyone who has Unfairbanks holding them in their clutches

Robin
New Lenox, Illinois
U.S.A.

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