Tuesday, March 24, 2009

HELOC Class Action Lawsuit Info

One of our readers referred us to Class Action Connect. An organizaiton that is working on bring plaintiffs and lawyers together for HELOC Class Action lawsuits. We are not endorsing this in any way, but we do think it is something that may be of interest to many of our readers. This is the info from their website -

If Your Bank or Mortgage Lender Froze, Suspended or Reduced Your Home Equity Line Of Credit or HELOC Loan, Contact A Class Action Attorney!

A team of class action attorneys has launched an investigation into the lending practices of certain banks and mortgage lenders that may have improperly frozen, suspended or reduced their customers' home equity lines of credit or HELOC loans by prohibiting further draws or advances and/or reducing the credit limit on the HELOC accounts.

The lenders are being investigated for freezing, suspending or reducing home equity lines of credit or HELOC loans by lowering the outstanding credit limits on the HELOC accounts based on an alleged general decline of housing and real estate prices in the borrowers' general geographic location, typically without warning or notice, and without assessing the value of the underlying collateral that secures each affected HELOC credit line and demonstrating that a specific property, house or home had declined significantly below the dwelling’s appraised value.”

As a result of having the credit limit on their home equity lines of credit or HELOC loans reduced, many HELOC customers may have incurred non-sufficient or not-sufficient funds fees ("NSF fees"), bounced check fees, early termination fees, appraisal fees, replacement HELOC closing costs for getting a new home equity line of credit or HELOC loan, excessive annual account fees and may have suffered, among other things, from a lowered credit rating and/or increase in the cost of credit.

If you had a home equity line of credit or HELOC loan and your bank or mortgage lender froze, suspended or reduced your line of credit because of a purported decline in home prices in your general area, you may be entitled to relief.

If any readers decide to work with this organization, good luck, and please let us know the details.

1 comment:

Anonymous said...