Countrywide Lawsuit
LOS ANGELES (AP) – Countrywide Financial is accused of using misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn’t fully know in a lawsuit filed by the California attorney all-purpose’s office today. The lawsuit was filed on the same day Countrywide shareholders approved the company’s takeover by Bank of America. The suit stems from information gathered under subpoena after the state launched a probe last year into the troubled company’s business. It also came on the same day Illinois attorney all-purpose filed a lawsuit alleging Countrywide engaged in “unfair and deceptive” practices to get homeowners to apply for risky mortgages far beyond their means. In the complaint filed in Los Angeles Superior Court, California Attorney All-purpose Jerry Brown asserts Countrywide violated the state’s unfair business practices and fake advertising laws with just about each action it took to market and originate some of the most well loved, and potentially risky, types of home loans in recent years. The lawsuit alleges Countrywide obscured the potential risks in the loans, misled consumers about payment stipulations, prepayment penalties and other obligations, and told borrowers they would be able to refinance before the interest rate on their loans adjusted.
Categories: Actual Testimonials Tags: Angeles Superior Court, Bank Of America, Borrowers, California Attorney General, Countrywide, Countrywide Financial, Deceptive Practices, False Advertising Laws, Illinois Attorney General, Interest Rate, Jerry Brown, Lawsuit, Los Angeles Superior Court, Misleading Advertising, Office Today, Prepayment Penalties, Risky Mortgages, Shareholders, Subpoena, Takeover, Types Of Home Loans, Unfair Business Practices
