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

Posted by Clyde Hutchins | Apr 17, 2017 | 0 Comments

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.

About the Author

Clyde Hutchins

Clyde Hutchins is the founder of Harmony Law. Prior to opening Harmony Law, Mr. Hutchins worked in the Wyoming Attorney General's Office for several years where he developed a strong consumer protection enforcement unit. In that position he led over 120 investigations and enforcement actions under the Consumer Protection Act. He worked on numerous joint cases with the Federal Trade Commission and other states, including Colorado, on consumer protection matters. Mr. Hutchins is also a contributing author to Consumer Protection Law Developments, Second Edition. Previous to his work in the Attorney General's Office, Mr. Hutchins was in private practice in Anchorage, Alaska where he was the chief litigator for a firm. Mr. Hutchins represented municipalities on various matters. Mr. Hutchins provided counsel to businesses and investment advisors regarding compliance with securities laws. He was also a bond lawyer and worked on municipal financing matters. Prior to that, Mr. Hutchins practiced civil litigation with a law firm in Cheyenne, Wyoming. Mr. Hutchins devotes his spare time to his family, traveling and enjoying the great outdoors.


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