As co-counsel in a series of national class action lawsuits brought under the Equal Credit Opportunity Act, NCLC has successfully attacked racially discriminatory lending practices in the used (and new) car business, with settlements valued at well over $100 million. The cases, which were filed against some of the nation’s largest auto finance companies and banks, charged that the defendants maintained policies which permit car dealers to "mark-up" the finance rates on loans based on subjective criteria unrelated to creditworthiness. This mark-up policy has had a disparate impact on African-American and Hispanic customers, who end up paying more for credit than whites with similar credit ratings. The lawsuits, which exposed practices that had operated secretly for over 75 years and had resulted in higher-interest rate car loans for minorities, have transformed car financing practices across the industry.
Baltimore v. Toyota Motor Credit Corp
Latest: As a result of a recent Court ruling, Toyota Motor Credit has been given until February 28, 2007 to send the claim forms to the class members and the deadline for class members to return the completed Claims Forms to the settlement administrator has been extended to April 16, 2007. Certificates of Credit or checks must be mailed to class members who filed timely, completed claim forms by May 31, 2007.
NCLC acted as co-counsel in this case which challenged the practices of the SupportKids, a private child support collection agency, and its rights to get money taken but not earned. The class of plaintiffs alleged that the company deceived them when it promised to collect unpaid child support and charged them for all monthly payments, even those they played no part in collecting.
NCLC acted as co-counsel on an appeal in which the plaintiff appellants charged that Harvard Pilgrim Healthcare improperly collected co-payments that exceeded the negotiated costs of certain prescriptions without disclosing the practice to the plaintiff.
NCLC co-counseled this case against Washington Mutual alleging that the defendant improperly assessed inspection fees and late fees in violation of contract and state and federal law.
Canieva Hood and others sued Santa Barbara Bank, alleging its cross-lender seizure of her tax refund to pay back an alleged 7 year-old debt to Household Bank was illegal. NCLC co-counseled the cased.
This class action, which NCLC co-counseled, was brought by bank customers who alleged that Washington Mutual extended credit to its customers in the disguised form of overdraft protections, without complying with applicable consumer protections including appropriate disclosures designed to inform customers of the true cost of credit.
The Fairbanks case resulted in a $47million settlement for consumers from Fairbanks Capital Corp a subprime mortgage services. Fairbanks (since renamed Select Portfolio Servicing) was charged with violating several federal laws, including the FTC, FDCPA, FCRA, and RESPA. As asserted in court filings, Fairbanks routinely misapplied mortgage payments, hit customers with bogus late fees and charges, and prematurely launched foreclosure proceedings against homeowners, among other complains. NCLC acted as co-counsel in the case.
NCLC is co-counseling in two military pension cases that allege that two companies involved in the advance funding business are extending loans to military personnel without proper disclosures in the transactions. The plaintiffs seek to void the loans in which their monthly benefits checks were traded for lump-sum payment, and to recover damages for the companies’ illegal actions, including the failure to provide important cost of credit information at the outset of the transaction. The same relief is sought on behalf of all veterans who have entered such arrangements
Henry v. Structured Investments Co.et al Complaint
Pettway v. Harmon Law Offices
NCLC co-counseled this case in Massachusetts District Court against Harmon Law Offices, charging FDCPA violations, improper attorneys’ fees, and overcharging for foreclosure costs.
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