Derek Oberholtzer will never again operate a mortgage modification business, or any other credit counseling service, in Idaho.
Idaho Attorney General Lawrence Wasden announced today that the owner of Coeur d’Alene-base Apply 2 Save, which closed last year, has consented to a settlement that will deny him a license for any activity regulated by the Idaho Department of Finance.
Oberholtzer and Apply 2 Save filed bankruptcies after collecting millions in fees from hundreds of homeowners hoping to renegotiate payment terms on their mortgages.
“Yet few consumers ever received the mortgage modification services they purchased,” Wasden said.
Wasden sued the company and owner in April 2009, and has since obtained $45,000 in restitution from another former Apply 2 Save executive.
Oberholtzer consented to similar prohibitions against credit counseling activities in a year-old agreement with the Federal Trade Commission that calls for a $4 million penalty if he violates any of the terms.