MBMAC Consulting Firm & Services, Inc.

Effective October, 2009 in California, it is illegal to collect any fees, regardless of the form, for negotiating or attempting to negotiate a loan modification for a residential mortgage. All modification services must be fully completed before any money can be collected. It is also illegal to divide fees or services into components for the purpose of avoiding this law.

HUD approved housing counseling agencies are exempt from this law. For businesses outside of California, please check with the agency that regulates this industry.

We urge caution. This company offers debt settlement, foreclosure and job placement services.
Our experience with debt negotiating companies is that they attract heavily indebted clients by claiming to be able to settle the clients’ debts for far less than the amount owed and to stop creditors’ calls. California law limits the amount of fees debt negotiators can charge you, but by not collecting the money and distributing it to your creditors for you, companies can remove themselves from the limiting statutes and charge whatever they wish. What they are supposed to do for you while you’re saving up your money is to contact your creditors and inform them that they’re working with you, negotiate the amount to settle your debt, and ask them stop contacting you.

Foreclosure companies typically offer to stop foreclosure on your home and assist in obtaining a repayment plan from your mortgage company. Some companies may make reference to your mortgage company in their solicitation, implying an affiliation, or may use other insignia or names that imply a relationship or affiliation with a mortgage company or government agency. Despite their claims, these companies do not have affiliations with any government agency or any special relationship with your mortgage company. Nor do they, as they may imply, have the ability to obtain more lenient repayment terms than you may be able to obtain by contacting your mortgage company directly.
If your written contract does not inform you of your right to a refund or to cancel, you may demand your refund or cancel your contract at any time, without regard to these time limits. Despite the law’s protections, if you are not dealing with a reputable company, you may find it difficult to enforce your rights.

Our experience with job placement companies is that they misrepresent their ability to provide interviews, fail to secure employment for you through their claimed contacts, or do not generate job leads that fit the applicants’ qualifications. In reality, the extent of their services is to provide assistance with improving your resume, self-marketing, interviewing skills, etc. despite promises or implications of securing employment for you.

California law requires that contracts with employment services be in writing. The contract must tell you, among other things, what the service will do for you, when they will do it and how much you will have to pay and when. Verbal or written promises or guarantees of employment by counseling services are prohibited, and the contract must include a statement that no such promises are made or implied.

By law, you may cancel a contract with an employment counseling service for any reason within three business days of the date of the contract. The contract must inform you of this right and tell you how to exercise it. It must also state the date of the transaction, on which date the cancellation period begins. We recommend that you read your contract thoroughly before signing and make sure it incorporates any verbal representations or promises that you would expect the company to carry out.