Foreclosure Law Firms and Title Companies to Pay $1.8 for Violations of Colorado Consumer Protection Laws

Foreclosure State Attorney General Title Insurance

On August 3, Colorado AG Cynthia H. Coffman announced that certain Colorado foreclosure law firms and title insurance companies must pay, pursuant to a court order, $1.8 million in penalties to resolve allegations that they participated in a scheme to defraud consumers. According to AG Coffman’s announcement, between 2008 and 2013, the law firms and title companies violated the Colorado Consumer Protection Act (CPA) and the Colorado Fair Debt Collection Practices Act (CFDCPA) by charging “false and misleading costs for title insurance policies” on more than 2,000 foreclosures. The court originally imposed penalties of $2,291,000 for violations of the CPA and $1,374,600 for violations of the CFDCPA, but the penalties were reduced to a combined $1.8 million because of a statutory maximum penalty cap.