ROY COOPER

ATTORNEY GENERAL
KenMcCurd
Lender Exchange, Inc.
3325 Washburn Avenue
Charlotte, NC 28205
Dear Mr. McCurd:
State of North Carolina
Department of Justice
900 I Mail Service Center
Raleigh, NC 27699-9001
November 17, 2008
RE: File No. 0811910
Carolyn Swann
PO Box 3
Yanceyville, NC 27379


Toll Free In NC
(877) 566-7226
Outside of NC
(919) 716-6000
Fax: (919) 716-6050
We have received a complaint against your company by the above referepced individual.
A copy of the complaint is enclosed for your review.
We have very serious concerns regarding the complaint filed by Carolyn Swann. In
particular, the information we have received indicates that your company may be providing
unlawful "foreclosure rescue" services and requests payment of an advance fee for these services.
Ms. Swann states that she and her husband contacted Lender Exchange in July 2008 for
assistance in saving their home from foreclosure. Ms. Swann states that in September 2008, she
and members ofher church paid Lender Exchange a total of 1,850.50 for foreclosure assistance
services only to find out that her house had already been sold two months prior.
For your information, in 2005, the North Carolina General Assembly enacted Senate Bill
590, entitled "An Act to Further Protect Consumers Seeking Assistance With Managing Their
Debts." Among other provisions, the new law expanded the definition of "debt adjusting,"
defined in North Carolina General Statute 14-423(a)(2), to include:
"the business or practice of debt settlement or foreclosure assistance whereby any person
holds himself or herself out as acting for consideration as an intermediary between a
debtor and the debtor's creditors for the purpose of reducing, settling, or altering the
terms of the payment of any debt of.the debtor, whether or not the person distributes the
debtor's funds or property among the creditors, and receives a fee or other consideration
for reducing, settling, or altering the terms of the payment of the debt in advance of the
debt settlement having been completed or in advance of all the services agreed to having
been rendered in full."
Lender Exchange, Inc.
November 17,2008
Page2
Accordingly, under this new law, effective December 31,2005, any foreclosure assistance
business that collects a fee in advance from any North Carolina consumer prior to the services
being fully performed, is engaged in illegal debt adjusting. There are criminal and civil penalties
for violations of the debt adjusting law.
Based on the materials provided to us from Ms. Swann, there is good cause to believe that
your foreclosure assistance business is operating in violation ofNorth Carolina law. To the
extent you are providing these services to North Carolina consumers, you are requested to
immediately cease and desist from offering or providing foreclosure assistance services to North
Carolina consumers and from the collection of any advance fees from North Carolina consumers
for foreclosure assistance services. Please be advised that the North Carolina Attorney General
has enforcement authority to seek injunctions, recover refunds for consumers, and to obtain civil
penalties against anyone violating the debt adjusting law.
We request that you provide an immediate refund to Ms. Swann in the amount of
$1,850.50 and that you respond to this office with written confirmation that the refund has been
made. We further request that you state your intentions with regard to compliance with North
Carolina law. Please be advised that failure to respond within the next ten (10) days or receipt of
additional complaints against your company will result in a formal investigation. When
submitting your response, please refer to File No. 0811910.
Investigator
CONSUMER PROTECTION DIVISION
Enclosure:
cc: Carolyn Swann
ROY COOPER
ATTORNEY GENERAL
KenMcCurd
Lender Exchange, Inc.
3325 Washburn Avenue
Charlotte, NC 28205
Dear Mr. McCurd:
State of North Carolina
Department of Justice
900 I Mail Service Center
Raleigh, NC 27699-9001
July 24, 2009
RE: File No. 0910145
Dale Robinson
1708 Parkdale A venue
Gastonia, NC 28052
CONSUMER PROTECTION
Toll Free In NC
(877) 566-7226
Outside of NC
(919) 716-6000
Fax: (919) 716-6050
We have received another complaint against your company by the above referenced
individual. A copy of the complaint is enclosed for your review.
It appears that Mr. Robinson, through his own representations and those of his legal
advocate, has paid Lender Exchange $872 for loan modifications services which were never
provided. He is requesting a refund of his money. Further, you have previously been advised
that payment of an advance fee for loan modification services is a violation of North Carolina's
debt adjusting statute. A fee cannot be charged prior to all services being fully performed. There
are civil and criminal penalties for violations of the debt adjusting statute.
I also have enclosed copies of correspondence from Mr. Robinson's legal aid advocate,
Mr. Mike Fulkerson, and our previous letter to you, dated November 18, 2008, which detail the
serious nature of these complaints. Ms. Swann has yet to receive her promised refund in the
amount of$1,850.50 for foreclosure assistance services. Now we have received a complaint
from Mr. Robinson. Again, he has been promised a refund of $872 but has yet to receive even a
return phone call to representatives from North Carolina Legal Aid. Upon review of the
complaints filed with our office, both consumers have incurred serious harm by having to file
bankruptcy or lose their home to foreclosure following their contact with Lender Exchange for
loan modification or foreclosure prevention assistance.
Lender Exchange; Inc.
July 24, 2009
Page 3
We request that you respond to us within ten (10) days upon receipt ofthis letter and that
you include confirmation that refunds have been made to Mr. Robinson and Ms. Swann. Failure
to comply may result in legal proceedings against you. When submitting your response, please
refer to File No. 0910145.
Enclosure
cc: Dale Robinson
Mike Fulkerson
Carolyn Swann
David C. Evers
Investigator
m t Y ~ tJ.wbv
M. Lynne Weaver
Assistant Attorney General
CONSUMER PROTECTION DIVISION
ROY COOPER
ATTORNEY G E ~ E R A L
Lender Exchange
3325 Washburn Avenue
Charlotte, NC 28205
Dear Sir or Madame:
State of North Carolina
Department of Justice
9001 Mail Service Center
Raleig\1, NC 27699-9001
October 8, 2009
Re: File No. 0914186
Dawne M Cornelius
2816 Brittni Dayle Drive
Charlotte, NC 28214
CONSUMER PROTECTION
Toll Free In NC
(877) 566-7226
Outside of NC
(919) 716-6000
Fax: (919) 716-6050
We have received a complaint against Lender Exchange. The complaint was filed by
Dawne M Cornelius of Charlotte, North Carolina and is enclosed for your review.
Based on Mrs. Cornelius's complaint, your business practices are illegal under North
Carolina law. North Carolina's Debt Adjusting Act, N.C. Gen. Stat. 14-423(a)(2), defines
illegal "debt adjusting" to include:
"the business or practice of debt settlement or foreclosure assistance whereby any
person holds himself or herself out as acting for consideration as an intermediary
between a debtor and the debtor's creditors for the purpose of reducing, settling. or
altering the terms of the payment of any debt of the debtor, whether or not the person
distributes the debtor's funds or property among the creditors, and receives a fee or
other consideration for reducing, settling, or altering the terms of the payment of the
debt in advance of the debt settlement having been completed or in advance of all the
services agreed to having been rendered in full."
Accordingly, under the law, any foreclosure assistance or loan modification business
that collects a fee in advance from any North Carolina consumer prior to the services being fully
performed, is engaged in illegal debt adjusting. The violation of the statute constitutes a
violation of North Carolina's unfair and deceptive trade practices statute, N.C. Gen. Stat. 75-
1.1, and also constitutes a criminal misdemeanor.
Lender Exchange
October 8, 2009
Page 2
We request that Lender Exchange immediately cease and desist from offering or
providing illegal loan modification services to North Carolina consumers and from the collection
of any advance fees from North Carolina consumers for such services. Please be advised that
the North Carolina Attorney General has enforcement authority to seek injunctions, recover
refunds for consumers, and to obtain civil penalties against anyone violating the debt adjusting
law.
We further demand that you provide Mrs. Cornelius an immediate refund in the amount
of $250., and that you provide this office with confirmation that a refund was issued. We
request that you respond to this letter within ten (1 0) days stating whether or not you intend to
comply with North Carolina law, and also stating whether or not Lender Exchange has
contracted with any other North Carolina consumers for foreclosure assistance or loan
modification services, and, if so, the number of North Carolina consumers you have contracted
with to provide such services.
When submitting your response, please refer to File No. 0914186.
Enclosure
cc: Dawne M Corneiius
~ c \ ) ,
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Specialist/Investigator
CONSUMER PROTECTION DIVISION