Thursday, December 14, 2017

Justice Denied the Consumer or State Overreaching?

I am usually on the lending/collection side, and we tend to focus on what we find aggressive government regulation or prosecution, so cases like this one usually get my attention. The State of Colorado alleged a foreclosure attorney's office overcharged for foreclosure-related charges such as serving notices, title searches, etc. in numerous foreclosure matters, thereby generating millions of dollars in unearned fees. According to the linked article, the judge found the state's evidence of wrongdoing to be grossly inadequate. The linked article describes a 90+ page Denver CO judge's opinion not only finding in favor of the foreclosure attorney's office, but finding the State of Colorado's case was so weak the foreclosure attorney's office was entitled to recover their legal fees from the state, likely totaling millions of dollars.

My knee jerk reaction to news like this is that it is a case of standard government overreach, but I know there are two sides to every story. Unfortunately I was unable to find the actual 90+ page decision online so I could gauge for myself the basis for the judge's decision. Reading the linked article between the lines, it appears the judge may not have ruled that the foreclosure office was free from misconduct, only that the State failed to present enough evidence to prove its case. The State has said it will appeal.

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