Scottsdale Real Estate Home Buyers: Avoid Internet Lender Scams
Below is only another reminder to get referrals from people you know when it comes to getting money to buy the biggest asset that you own! Your Realtor always has a few lenders that he/she works with that are reliable and trustworthy. Usually, we have lenders that specialize in specific areas and we can connect you with the appropriate lender for your situation.
And, please know that realtors do not get “kick-backs” from lenders, it’s illegal. We simply have established solid working relationships with lenders that we can trust to get the job done right and on time, while providing outstanding client care and follow up.
IRVINE, Calif., Oct. 11 /PRNewswire/ — The law firm of Teuton, Loewy & Parker LLP announced today that it filed a nationwide class action against LendingTree, LLC and its wholly-owned subsidiary, Home Loan Center, Inc., on behalf of consumers. The class alleges that LendingTree, LLC and Home Loan Center, Inc., which does business as “LendingTree Loans,” have engaged in unfair business practices and false advertising. The complaint was filed in Orange County Superior Court on October 11, 2006.
LendingTree’s familiar slogan is: “When banks compete, you win.” With this slogan, LendingTree styles itself as an online lending exchange that connects borrowers to a network of lenders that allegedly “compete” for the borrowers’ business. The lawsuit alleges, however, that in thousands and thousands of cases there is no such competition at all; rather, LendingTree uses its LendingTree.com website and false advertising to generate leads for its wholly-owned, direct-lending division, Home Loan Center, Inc.
Specifically, the lawsuit alleges that LendingTree’s website attracts over 70,000 potential borrowers per month by touting LendingTree as a loan origination service that is not a lender, and claiming that LendingTree’s “origination” service allows lenders to compete for borrowers’ business. The lawsuit further alleges that LendingTree secretly diverts many LendingTree.com leads to its subsidiary, where unsuspecting borrowers are sold loans at inflated prices based on the materially false representation that “competition” has occurred among lenders.
According to the lawsuit, borrowers are deceived into believing that they need not shop for a better loan rate because LendingTree has already done the shopping for them through use of its lender “network.” In truth, the lawsuit alleges, LendingTree uses the “when banks compete, you win” slogan as a gimmick to attract unwary borrowers and sell them loans through the company’s direct-lending division at inflated prices and without any such competition.
The class action seeks declaratory and injunctive relief, millions of dollars in compensatory and punitive damages, restitution, and attorneys’ fees.
A related lawsuit was filed on September 15, 2006 by Fadel Lawandy, a former mid-level executive of LendingTree who was fired for alleged “insubordination” after he complained about LendingTree’s business practices.
If you have any information about this matter, you may email Teuton, Loewy & Parker LLP at LendingTreeinfo@tlpfirm.com Mark C. Teuton, Esq. Teuton, Loewy & Parker LLP (”TLP”) is a Southern California law firm. TLP is actively engaged in complex litigation, including class actions brought on behalf of consumers and employees. TLP’s capabilities in these fields are based upon the talents and extensive experience of its attorneys, who have litigated class actions in state and federal courts throughout the country. ——————————————————————————–
TEUTON, LOEWY & PARKER LLP
3121 Michelson Drive, Suite 250, Irvine, CA 92612
Tel: (949) 442-7100
Fax: (949) 442-7105
www.tlpfirm.com
Source: Teuton, Loewy & Parker LLP
