PHOENIX (Friday March 11, 2011) -- Attorney General Tom Horne today announced a settlement agreement with Scottsdale based Principal Reduction Group, LLC, and Brian Cutright, owner and operations manager of Principal Reduction Group, LLC.
Pursuant to the settlement agreement, Principal Reduction Group and Brian Cutright agree to no longer engage in any activity, directly or on behalf of any third party, that involves originating, closing, or modifying any term of a consumer’s mortgage loan, or obtaining a reduction on a consumer’s debt, of any kind, while in the State of Arizona or on behalf of any Arizona consumer.
Horne stated. “Consumer fraud targeting homeowners who are facing difficulties paying their mortgages is a problem that must be dealt with and I am committed to finding and prosecuting those people who use predatory schemes.”
Additionally, the settlement agreement provides for full restitution to the consumers who filed complaints with this office; on average, those consumers paid $5,500 each for principal reduction services from the Defendants.
Finally, the settlement agreement requires the Defendants to pay $25,000 as civil penalties and $5,000 for attorneys costs and fees. The Attorney General shall deposit the funds into the consumer protection-consumer fraud revolving fund.
This settlement agreement is pursuant to a consent judgment currently awaiting court approval.
If you believe you have been a victim of consumer fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the Phoenix and Tucson metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General’s Office has satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General’s Web site, www.azag.gov.
This case was handled be AAG Cherie Howe.