A former senior executive, Scott Norris, at San Diego County Credit Union (SDCCU) is claiming in a wrongful termination lawsuit that the institution failed to correct problems in its loan-servicing program that affected thousands of customers.
The lawsuit claims that the the credit union engaged in unlawful, and fraudulent, activities. SDCCU had failed to
disclose changes in fees on mortgages required by the Truth in Lending Act ("TILA") and Mortgage Disclosure Improvement Act ("MDIA").
SDCCU had problems with widespread errors with regard to real estate loan servicing. Specifically, the credit union had been improperly processing late charges. The problem dated back to 2005 and approximately 2,000 members of SDCCU was affected by the error, according to the complaint.
Also, the complaint alleges that the plantiff recommended that recast the affected loans, and estimates that the cost to credit union could be approximately $500,000 due to needing to issue refunds to members. In response, Teresa Halleck, CEO of San Diego County Credit Union stated: "We're not going to do that," even if it posed the risk of a class action lawsuit.
The complaint alleges other problems at the credit union.
Read the story.
Read the complaint.
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