Legal Question in Credit and Debt Law in California

The credit card company is correct - they cannot reverse the charges. You are going to have to sue Priority Mortgage (assuming they are even still in business) and/or pursue them through one of several sources - the Department of Real Estate or the California Attorney General. The Attorney General's office just set up a task force to deal with mortgage-related fraud. They are going after people and banks who have taken advantage of consumers. Priority Mortgage is pressumably licensed by the Department of Real Estate and you may file a complaint with them if they are licensed. I believe by March 2009 that a new law had gone into effect (it may have been after March 2009) which prohibited anyone attempting to obtain a loan modification for a consumer from taking an advance fee. They may have violated that rule. Finally, you can always sue them, but if they are like many of these companies, they are no longer in business. Good luck - I do hope you can recover some of what you are out.

There really isn't much you can with respect to the credit card company. You did not initiate the disputed in a timely fashion, but this does not prevent you from filing legal action against Priority Mortgage.

If the amount owed is less than $7500, you could file a small claims lawsuit. I would also consider filing a complaint with the Better Business Bureau and the California Department of Consumer Affairs.