Connecticut attorney general sues Florida mortgage rescue firm

The state of Connecticut is suing a Florida mortgage rescue firm, alleging it failed to deliver on promises to help consumers avoid foreclosure.

Attorney General Richard Blumenthal, in cooperation with Jerry Farrell, Jr., commissioner of the state Department of Consumer Protection, is suing FHA All Day.com, Inc. of Delray Beach, Fla. According to Blumenthal, the company charged $2,500 to $4,500 to negotiate with lenders to help homeowners avoid foreclosure and reduce indebtedness, but then failed to make good on the service.

The lawsuit seeks restitution for consumers who Blumenthal alleges have lost tens of thousands of dollars. Blumenthal is also seeking civil penalties of up to $5,000 per violation of state consumer protection laws.

The company could not be immediately reached for comment.