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The Boston Globe

Business

State sues firms over tactics on home loans

Coakley urges vigilance against foreclosure scams

Attorney General Martha Coakley on Thursday warned Massachusetts homeowners to be wary of foreclosure-rescue scams, citing legal actions her office filed against two local companies that the state said took advantage of people trying to save their homes.

Coakley contends both companies unlawfully required upfront payments from homeowners trying to avoid foreclosure, among other violations. Despite a state law banning such pre-payments, she said, many people still fall victim to the tactic.

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