Colorado Attorney General fails to prove that Debt Collection Law Firm overcharged

Earlier this month, the Denver District Court ruled that the Castle Law Group, a large foreclosure law firm, did not engage in overcharging and imposing deceptive costs for foreclosure services.The case was brought by the Colorado Attorney General in the wake of the foreclosure housing crisis. The Attorney General alleged that the Castle Law Group and several related foreclosure services entities conspired together to raise the costs associated with foreclosure services. After a three week bench trial early this year, the Court basically concluded that the evidence failed to show a conspiracy to overcharge as described by the Attorney General.

Although the Castle Law Group prevailed on the main claims in the case, the Court ruled that the firm should pay a $119,500 penalty for failing to disclose to Fannie Mae and Freddie Mac that it had made a profit in service fees.

The case is State of Colorado, et al. v. The Castle Law Group, LLC, et al. Case No. 14CV32763.