RALEIGH, N.C. -- A Lenoir County company that targeted distressed homeowners with false offers to help save them from foreclosure has been ordered to stop taking consumers’ money, officials said Friday.

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Attorney General Roy Cooper filed suit against Alphin Marketing Group, Inc., also known as Alphin Group. Cooper alleges that the company and its owner broke state laws and he is seeking to permanently bar them from offering foreclosure assistance and debt adjusting services in North Carolina.  Cooper is also asking the court to cancel the company’s contracts with consumers and pay refunds.  

“Times are tough and many people are looking for help to save their home,” Cooper said.  “We won’t hesitate to go after outfits that are trying to make a fast buck off of families in trouble.”

This week, Superior Court Judge Orlando Hudson ordered the company and its owner, Russell E. Alphin,  to cease operating while Cooper’s suit against them goes forward. 

According to the complaint, Alphin Group combed through public courthouse records for the names of homeowners who were facing foreclosure, then sent them a mailing claiming it could help them avoid foreclosure and in most cases “drastically reduce or eliminate” late mortgage payments. 

Cooper says Alphin Group collected its fee upfront, typically one month’s mortgage payment, and promised to negotiate with lenders on the homeowner’s behalf.  The company also told homeowners not to talk to their mortgage company, urging them to let its so-called experts handle all communications.  In reality, Alphin Group did little or nothing to help these consumers, Cooper said.

Five consumers have filed complaints with the Attorney General’s Office about the company.   

Cooper said consumers should never pay money up front to help with foreclosure. He urges residents facing foreclosure to call the HOPE helpline toll-free at (888) 995-HOPE. The line is open 24 hours a day, seven days a week and offers free counseling on options to avoid foreclosure.