Colorado’s Attorney General has accused two of the state’s law firms of fraud, claiming that the firms inflated the costs charged to homeowners.

According to a report from Reuters, Attorney General John Suthers sued two foreclosure law firms, Robert J. Hopp & Associates and The Hopp Law Firm, and The Vaden Law Firm, stating that the firms overcharged consumers, for amongst other things, non-existent title insurance policies.

From the Reuters report:

(Suthers) said the Vaden firm is alleged to have inflated foreclosure costs for postings, court filings and titles, while Hopp is accused of routinely collecting between $1,200 and $1,400 in premiums for non-existent title insurance policies.

"For abusing the foreclosure process for their own profit, eight Colorado foreclosure law firms have now been targets of investigation by my office," Suthers said in a statement.

"It is my hope that these actions will result in greater transparency and fairness in the legal processing of foreclosures."

In July, one of Colorado’s largest foreclosure law firms, Aronowitz & Mecklenburg, confirmed it will pay $10 million to settle a price-gouging complaint brought against it by the state's attorney general.

In that case, Colorado alleged that the law firm sought to unfairly raise the cost of their foreclosure services, relying on the fact homeowners could not dispute the costs and the state of Colorado lacked proper administrative and judicial tools to prevent the actions.

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