Homeowners victimized by a law firm’s alleged overcharging of foreclosure fees are receiving restitution of $7.7 million.
The money comes from an enforcement action against the Denver firm of Aronowitz & Mecklenburg LLP, initiated by the Colorado Attorney General’s office.
by regulators alleges that principals in Colorado’s two largest foreclosure law firms — Aronowitz & Mecklenburg and Castle Law Group, plus some smaller firms — inflated fees charged to homeowners who were trying to save their homes from foreclosure proceedings.
Aronowitz & Mecklenburg agreed to settle the lawsuit without admitting guilt. .
The Attorney General’s office said Monday it has sent out more than 20,000 checks to homeowners for partial restitution of the Aronowitz & Mecklenburg overcharges.
“Consumers trying to resolve a foreclosure should not have had to shoulder the additional burden of illegally-inflated costs,” Attorney General Cynthia Coffman said in a statement. “We are very glad that we can return some of that money to homeowners.”
Rich Benenson, a Brownstein Hyatt Farber Schreck attorney representing Aronowitz & Mecklenburg, said his client has filed for dissolution and is in the process of winding down its operations.
The consent decree with the attorney general’s office stipulated that the principals of Aronowitz & Mecklenburg cannot have an ownership interest in any law firm or other business with ties to the foreclosure industry.
The attorney general’s office said that consumers with questions about the settlement checks or eligibility for refunds should call the settlement’s administrator at 1-844-533-9506.
