CT AG Proposes Law Allowing Only Nonprofits to Operate Debt-Reduction and Foreclosure-Prevention Entities Amidst Numerous Scam Complaints

Connecticut Attorney General Richard Blumenthal proposed legislation last week that would allow only nonprofit organizations to operate debt-reduction and foreclosure-prevention entities in Connecticut and would ban up-front fees for such services. He said he hopes the legislation, backed by many Democratic leaders in the state legislature, will be passed and put into effect quickly because of the hundreds of schemes that residents have been reporting to his office.

Blumenthal is investigating complaints involving a company called S.K.A. Properties Inc. of Attleboro, MA, which CT resident Gary A. Gudat alleges bilked his 76-year-old mother out of her nest egg and left him and a disabled sister, Debra Durocher, without a place of their own.

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