Butler v. Beneficial Homeowner Service Corporation

No. 01-CV-6450 CJS(F) (W.D.N.Y. Filed September 14, 2001) ; Clearinghouse Number: 55823

Description

Low-Income Homeowners Sue Finance Company for Charging Exorbitantly Priced Mortgage Loans Violating Federal Lending and Home Ownership Laws

Abstract

Plaintiffs—a class of low-income New York homeowners divided into four subclasses—filed their complaint charging that defendant finance company violated the Home Ownership Equity Protection Act, the Truth in Lending Act, and state law. They contend that defendant, through misrepresentation, unfair and deceptive practices, and other unconscionable conduct, entices class members to enter into mortgage loan transactions that provide little or no benefit to borrowers and consider only borrowers’ equity in their homes, not their ability to repay the loans. Plaintiffs further allege that defendant does not make the disclosures required by federal and state law and that when plaintiffs are unable to make mortgage payments defendant refinances their mortgages, adding still more fees, or forecloses on their property. They claim that defendant’s practice of extending mortgage credit to consumers without regard to their ability to pay is against public policy and that the mortgages are therefore void. Plaintiffs seek class certification and an order enjoining defendant from engaging in the practices that plaintiffs challenge or from foreclosing on their property, granting rescission, and voiding any lien or security interest that defendant has against plaintiffs’ property.

Additional Information

Attorney Information
Plaintiffs represented by Jean Constantine-Davis, Nina Simon, AARP Foundation Litigation, 601 E St. NW, Washington, D.C. 20049.
Docket Date
2001-09-14 00:00:00+00:00

Files

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