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121010 assurity lawsuit release

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121010 assurity lawsuit release
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PRESS RELEASE

Colorado Department of Law

Attorney General John W. Suthers



FOR IMMEDIATE RELEASE

December 10, 2010



CONTACT

Mike Saccone, Communications Director

303-866-5632



ATTORNEY GENERAL FILES LAWSUIT AGAINST ENGLEWOOD BUSINESS, DENVER

AND CASTLE ROCK MEN FOR THEIR USE OF DECEPTIVE TRADE PRACTICES



DENVER — Colorado Attorney General John Suthers announced today that his office has filed a lawsuit

against Assurity Financial Services, one of the company’s managing members, Calvin B. Hamler

(DOB: 6/20/1973), and the company’s former managing member, Troy P. Hamler (DOB: 4/24/1972). The

defendants are suspected of violating the Colorado Consumer Protection Act by using deceptive

advertisements that claimed, among other things, a false affiliation with the U.S. Veterans Administration,

the U.S. Department of Housing and Urban Development and the homeowners’ lenders.



According to the complaint, filed in Denver District Court, some of the company’s mailers solicited

consumers in several states, including Colorado, to apply for refunds of their mortgage insurance

premiums, escrow accounts, and VA escrow accounts and funding fees. The mailers the defendants

circulated appeared to be from the federal government and even included a Washington, D.C., return

address. These representations allegedly misled consumers into believing that Assurity Financial Services

had the authority to secure refunds for consumers. The mailings also appeared to be official notices,

which they were not. The complaint also alleges that other mailers appeared to come from the

homeowners’ lenders.



The defendants also are suspected of sending homeowners postcards claiming that they could

“reclassify” their home loans into a more favorable loan. The mailers did not disclose that, in fact, the

defendants were asking homeowners to refinance their homes through the company.



According to the complaint, Assurity Financial Services’ mailings gave consumers the false impression of

urgency and a need to act quickly. In some cases, the company’s mailings also allegedly informed

homeowners they were in default when they were not.



Assurity Financial Services had entered into a legally binding agreement with Colorado and Florida in

July 2009 where the company agreed to halt its deceptive direct mailings and pay the states $200,000 in

six payments. Assurity Financial Services did not make its scheduled payment on July 1, 2010.



The Florida Attorney General also has sued Assurity Financial Services and the Hamlers. The states of

Arizona, Washington and Idaho had previously entered into agreements with Assurity Financial Services

and the Hamlers concerning the deceptive content of similar mailings to consumers in their states.



Consumers who believe they have received a misleading or deceptive solicitation from a private company

are encouraged to file a complaint via www.coloradoattorneygeneral.gov/complaint. Consumers also can

file complaints via 1-800-222-4444.


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