|Washington Mutual Fraud|
|SmartMoney magazine (Cover) calls WaMu "THE BANK FROM HELL"|
|in a Nov. 02 article: "I Can't Believe They Treat People Like This". Buy it or view Online.|
|The Orange County Register (CA) printed 2 articles on Case No. 02CC15162:|
|Oct. 9, 02: WaMu "sold Clara and Francisco Alonso's $650,000 Yorba Linda house from under them because of a $51.56 error." On Tuesday, a judge called the foreclosure "horrendous." "undo this transaction," Orange County Superior Court Judge James P. Gray told Washington Mutual|
|Oct. 23, 02: "Bank returns family's home" (WaMu "sold house due to $51.56 error")|
(Judge: "... make sure this doesn't happen again." "We're really dealing with people's lives here."
|According to a USA Today 10/8/02 article: "They received a default notice, but in July
2002 entered into a repayment agreement with the bank by which they would
make monthly payments in the amount of $3,994.89, beginning in August
2002. On August 30, 2002, Mrs. Alonso went in person to Washington
Mutual to make the first payment, but did not have a copy of the repayment
agreement with her. She asked a teller to look up her home loan account and
was told that the amount due was $3,943.33. Relying on that information, she
wrote a check for that amount. |
On September 10th, the Alonsos received a letter from Washington Mutual, returning their check and informing them that, as partial payments were not acceptable, the loan was immediately in foreclosure. Their efforts to pay the remaining $51.56 fell through as they were never able to connect with the bank's designated officer, even though repeated attempts were made. Washington Mutual informed Plaintiffs that if they did not enter into a modification of their repayment plan, they would foreclose on the house on September 24, 2002. To their complete shock, the Alonsos learned that their home sold at foreclosure on September 20, 2002."
|Others Claim WaMu also: (see ebizcritique.com for details - summary below)|
1) extorts late charges by posting payments far after they're received
|Reader Feedback on this WebSite: (just a few of the many)|
|I just recently quit WAMU.... You can not be an honest person and work there. Everything you have stated here in your website is true.|
|Do you know if any class actions have been started to address the predatory way WaMu charges checking accounts (in my daughter's case) hundreds of dollars in overdraft fees which they incur by timing postings to the disadvantage of the account holders?|
|I am a former Loan Consultant with WM. I was terminated for criticizing the poor customer service the clients received and for sending a copy of a credit report to the customer who had been involved in an auto accident and did not understand what was going on. I was only trying to help the poor woman. In the 13 months I was employed by WM, I had witnessed some of the most appalling incompetence ever. Documents were routinely lost and clients could never get the status of their loan. Some loans lasted over a year. WM is company of failures and does not fire incompetent and mediocre managers, just recycles them. Customers do not realize the risk they run by applying online or over the phone. Just a punk kid on the other end who really does not care.|
|I FedEx'd a cashier's check to bring a mortgage current on behalf of a client that WAMU received and signed for 1/3/02. They did not post the funds until June. The entire time they threatened to begin foreclosue (again). I had to get the Dept of Commerce involved for them to admit they even received the money|
|I have had nothing but problems with Washington Mutual from the day they took my loan over. I would say that my experiences mirror all the others I have read. My husband filed a complaint with the U.S. Attorneys Office in San Jose, CA. In order for the U.S. Attorney to have the FBI investigate the charges and not treat it as a civil matter I need everyone who has posted to all the sites to send their information to : United States Attorney Federal Building Third Floor Duty Attorney 280 So. First Street San Jose, CA 95113|
|Few weeks ago I refinanced my mortgage. My previous lender was Fleet bank (I was very happy with them), approximately 1 year ago my loan was purchased by Washington Mutual. Since the day it happened the process that used to be a “regular bill payment procedure” became a lengthy, confusing and full of surprises set of events. I found that by sending my bill between 1 and 5th of each month hardly made it to be paid by 16th !!!!!!!! My point is I tend to agree with you that they might have been posting payments late just to charge the late fee.|
|June 2001 wamu lost a electronic payment which put me delinquent 30 days every month untin January 2002. They have proof that the payment was sent but claim never to have recieved it. One of the customer service reps actually told me that the post office was to blame for the damage done to my credit and there was nothing that they would do for me.|
|WAMU gave my loan to their sub-servicer, Litton Loan Servicing, over 60 days ago. I filed a RESPA complaint and a dispute May 11 with Litton, and now they are in violation of RESPA and my loan contract also! My att'y believes that WAMU has violated my contract, meaning WAMU should have to pay all attorneys fees.|
|I filed for a car loan with WM, during this initial sign-up, we paid to have the vehicle registered. Well, come a few months later, I get pulled over because the vehicle shows up unregistered. We finally discover that the papers for the registration could not be found. In other words, the vehicle was NEVER registered, and the papers for this loan are missing. We had the cancelled check. After about a year of playing phone tag with at least 4 different WM departments, they finally decide to cut a check to DMV to pay for the registration. Yet, refused to pay for our car rental fees, since we could not drive the vehicle, nor our time off from work, we had to take to get this matter taken care of.|
|WAMU let someone walk into a branch office, switch addresses on both a money market account, a checking account, and set up telephone banking. A few days later, this guy does about 5 telephone transfers from the MM acct into the checking acct and, of course, writes checks to everyone. I didn't realize that this was happening or that statements had stopped coming... WAMU tells me that they're not going to provide restitution claiming that I'd exceeded the statutes for notifying them of a problem. I filed an ID Theft report to the California Department of Motor Vehicles and the woman who took my report said that just that morning, her fraud unit had this big "what's-with-Washington-Mutual?" discussion. The California DMV gets a lot of these ID theft claims, but she said that a large percentage of them centered around WaMu and the DMV investigators were questioning if something was up with that bank. I'm sure it's more than coincidental--that bank is out-of-control.|
Washington Mutual appears to have explicitly broken 4 Federal Laws:|
1) 15 USC § 1601 et seq.: Truth in Lending requires that banks disclose all details of the transaction
2) 12 USC § 1831n(2)(A): Requires banks to follow “Uniform accounting principles consistent with GAAP”
3) 12 USC § 2605 RESPA: requires that banks acknowledge & respond to a “qualified written request”.
4) 15 USC § 1611 Whoever willfully and knowingly (1) gives false or inaccurate information or fails to provide information which he is required to disclose under the provisions of this subchapter or any regulation,
|Washington Mutual also appears to have broken State Laws:|
1) Business and Professions Code 17200 (for unfair and deceptive business practices), |
2) unjust enrichment, 3) breach of fiduciary duty, 4) conversion, 5) negligence and
6) violations of the (WA & CA) Consumer Protection Act
7) violations of California Civil Code 2943 for not supplying Payoff Demand Statements, if requested by mail
|Wow!! They and the Trustee (Calif Reconveyance) break Civil Code 2943, too!!!|
I have repeatedly requested the Payoff Demand Statement by mail: they just ignore it!
|I have found Washington Mutual impossible to work with|
|Mortgage payments sent in plenty of time were always posted as late, so I have had to go into the Branch and buy a Money Order and have them send it to avoid more late charges. It appears from lawsuits and complaints from others that this is how they make extra money.|
|I had a Prop. 13/Prop. 58 Property Tax reduction that the LA County Assessor disallowed until I won the appeal. (After that, the Tax Collector just wasn't coordinating with the Assessor yet.) When I wrote Washington Mutual on 11/13/98 about the situation, they refused to answer my letters and paid the Tax Collector the wrong amount, and caused near foreclosure many times by extorting larger payments and late charges, until I got the Tax Collector to refund their overpayment ($3,000).|
|I have found major irregularities in their Disclosure and Accounting Practices. I started writing them on this in November 2001, and have been writing them since. They overtly break RESPA Law by refusing to even acknowledge my letters (all sent Certified Mail w/ return Receipt), let alone answer them.|
|I have filed complaints with the BBB and the Federal Office of Thrift Supervision, among others.|
|Washington Mutual will not answer any letters on any subject!|
(This is a Direct Violation of RESPA Law! - Do they want Lawsuits?)
|They break California Civil Code 2943 by not providing a Payoff Demand Statement when requested by mail, as well.|
|We should all complain to the Office of Thrift Supervision, but they try very hard to close the case, even for a bogus reason. When I found out WaMu's CEO Kerry Killinger was on the board of directors of the OTS, I learned why. The fox is at the head of the chicken-coop security.|
Check Out 8 Major Class Action Lawsuits against Washington Mutual:|
1) http://www.mortgagedaily.com/Wamu3-21-01.html (Class Action by Girard & Green, LLP, [Sandoval v. Washington Mutual, Inc., et al., pending in Washington state court, Pierce Co. Sup Ct. Civil#01-2-06488-1 (FBH)] which alleges “deceptive, unfair and oppressive business practices directed at mortgage loan borrowers”.),|
www.classcounsel.com/news/bank_united.cfm (Green, Fauth, and Jigarjian (SF, CA)[formerly Girard & Green]: WaMu "engaged in deceptive, unfair and oppressive business practices directed at mortgage loan borrowers, and breached the mortgage loan contracts which govern their mortgage loan servicing transactions. These practices include failing to post payments received from borrowers in a timely fashion and then charging the borrower a "late charge" and additional interest; imposing improper "property inspection" fees; and failing to respond to borrower complaints or remove improper charges assessed to borrowers")
http://www.classcounsel.com/openfiles/ charges WaMu, et al. "with violations of the Washington Consumer Protection Act, breach of contract, and breach of the duty of good faith and fair dealing"
Also, joined by http://www.lieffcabraser.com/washington_mutual.htm (Lieff Cabraser: WaMu "routinely assessed improper property inspection fees in violation of federal regulations, and in breach of its own mortgage contracts. Plaintiffs also allege that Bank United/Washington Mutual regularly assesses improper late fees and finance charges on payments timely made by customers that are received during the contractual fifteen day grace period provided in the mortgage contracts.)"
2) http://www.mortgagedaily.com/WamuClassAction080301.html(Class Action by Cohen, Milstein, Hausfeld & Toll,(in Pierce Co. Sup. Ct, Washington) which alleges “”deceptive, unfair and oppressive business practices directed at mortgage loan borrowers”.),|
|3) http://www.cmht.com/casewatch/cases/cwwashmut2.htm [1/28/02: Dembowski, et al. v. Washington Mutual Bank, FA, Civil Action No. 02-2-03866-2SEA (Superior Court of Washington State, King County)] For WaMu customers only, that were not with Bank United as well (see Pierce Co suit above)|
|4) http://www.mortgagedaily.com/Wamu061501.html($71 Million Awarded in Mississippi for "not disclosing insurance premiums included in loan renewals")|
|5) http://www.classactionamerica.com/cases/case.asp?cid=507 (Briseno v Washington Mutual Bank [filed 1/1/98] alleges that the bank victimized at least 25,000 homeowners since 1993 by overcharging for replacement hazard insurance)[1/25/01:CA Supreme Ct gave ruling on how Trial court to handle this]|
|6) http://www.lawfoundation.org/mhap_success.htm (Law Foundation sued for WaMu's alleged practice of illegally seizing elderly and disabled clients' protected Social Security benefits)|
(for allegedly systematically misapplying funds to work in their favor, as well as other irregularities.)|
8) Copy of Suit Brown v. WaMu (LA Co, Sup BC 192874)|
PAUL E. BROWN, RONALD L. COURTOIS, MARK A. CHADWELL, WILLIAM D. BARRY, KIM S. REA, JAMES N. MYERS and BONNIE MYERS, et al. vs.
WASHINGTON MUTUAL BANK, F.A., GREAT WESTERN BANK, and AMERICAN SAVINGS BANK,F.A.
"based on nondisclosures and mis-disclosures of defendants (hereinafter collectively "Washington Mutual"), unwittingly paid inflated charges for credit reports, real estate appraisals, flood certification fees, tax service fees, wire transfer fees, express document delivery and/or other loan-related services which exceeded Washington Mutual's actual cost for those services"
"violations of California's UCA"
|More on Class Action Lawsuits below|
|I have filed the following complaints against Washington Mutual:|
|2/18/02 Complaint # 10256637 to the Better Business Bureau 550 W. Orangethorpe, Placentia, CA 92870|
|2/20/02 Complaint # 0506642002 to the Office of Thrift Supervision, Dept of the Treasury|
|1/31/02 Complaint # CAC2002W-002812-0 to the FDIC|
|3/15/02 Complaint to http://www.ebizcritique.com|
|To date (3/16/02), Washington Mutual has never responded to any letter, in direct violation of RESPA laws.|
|NOTE: I have letters from the Better Business Bureau and the Office of Thrift Supervision stating that WaMu won't respond. Is WaMu for real??? (or is this a cartoon/play company?)|
|We should all complain to the Office of Thrift Supervision, but they try very hard to close the case, even for a bogus reason. When I found out WaMu's CEO Kerry Killinger was on the board of directors of the OTS, I learned why. The fox is at the head of the chicken-coop security.|
|You really need to read www.ebizcritiques.com's Reader Complaints.|
|I wrote about Possible Fraud - WaMu appears to have Violated 4 Federal Laws, including RESPA.|
|Another wrote: "Washington Mutual purchased my loan about a year ago. I pay my mortgage on the 15th of the month BEFORE it's due i.e. pay March 15th for April 1st payment. I was assessed late fees for several months because the payment was being credited around the 20th of the month (the cut-off day is the 17th). I spent months trying to get this situation sorted out. I was even told not to make my payments ahead of time"|
|lr9999 wrote: "RUN AWAY SCREAMING FROM THIS HORRIBLE COMPANY!!!!!"|
|foxtrot18 wrote: "WaMu "lost" payments, refused to give my sister an adress to send return recipt mail to, and tried anything they could to take Their house."|
|rrtickets wrote: "DO NOT GET INVOLVED WITH THIS COMPANY!!I have been trying to get PMI removed from our loan for 11 months and am no closer to a response from WaMu than when I started even though we meet all their criteria. Every time I call I am given a different number to call or fax my request for PMI deletion and told the previous number I was given was the wrong office. PMI removal office takes no incoming calls and DOES NOT return any calls. These are CROOKS. I WANT A CLASS ACTION"|
|abuckner wrote: "They cashed 3 consecutive loan payments on our rental property but did not credit our account - They lost a 4th payment"|
|seaseal wrote: "Washington Mutual acquired my mortgage by buying Great Western. They then paid my property taxes even though I had a deferment."|
|OnTheRoad wrote: "If there was ever a banking equivalent for 'slamming' (a practice in the telephone industry of enrolling you in fee-charging programs without your knowledge), then WAMU Mortgage would probably be one of the worst offenders."|
|nysres wrote: "I have been having significant problems with WaMu as a result of them NOT paying my 2001 school tax bill accurately and on time. My town assessor received the payment 2-8-02!!!! Customer service was atrocious (except for 2 out of 12 reps) with lengthy hold times, false complaint phone numbers, and general incompetence. I sent a Letter of Complaint to the Office of Thrift Supervision in CA (via the NYS Banking Dept.), and have placed my name of the pending class action suit."|
|Anonymous wrote:"I'm a former Fleet mortgage customer. Now Wa Mutual, not by choice.
They lost my payment. Much aggravation. I've been making mortgage payments to various banks for over 10 years. Never before have I had this problem. It took 6 phone calls and 2 faxes straighten it out the first time. Now it appears they lost it again.|
I believe I should look into the following class action: http://184.108.40.206/C-Loans.html
See Class Action Take Two
http://www.classcounsel.com/firm/caselist.cfm Sandoval v. Washington Mutual, Inc., et al.,
Civil Action No. 01-2-06488-1 (FBH) (Wash. Super. Ct., Pierce County)
Class action alleging deceptive business practices arising out of mortgage loan servicing transactions
http://www.classcounsel.com/news/bank_united.cfm "Washington Mutual and Bank United Alleged to Post Payments Late"
If you have information concerning the mortgage servicing practices of Washington Mutual or Bank United, or to inquire about your own rights, please contact either Jenelle Welling (email: firstname.lastname@example.org) or Robert S. Green (email: email@example.com) at the telephone number below.
Green Fauth & Jigarjian, LLP
235 Pine Street, 15th Floor - San Francisco, California 94104
Telephone: 415-477-6700 Fax: 415-477-6710 Email: firstname.lastname@example.org
|WaMuSux wrote: "Stay away from Washington Mutual. I have never seen more blatant neglegence in my entire life."|
|Momma2Brien wrote: "problems with WAMU adding late charges to our monthly bills. Putting our money into *suspense because I fail to pay for their mistake of overpaying my taxes. This month they were late but still overpaid. Feel free to contact me at Momma2Brian@aol.com"|
|jkisraft wrote: "Ever since WaMu took over PNC as the mortgage loan servicer for my home loan (beginning August, 2001) I have not had one payment timely credited to my account. When contacted they usually claim that they did'nt receive the payment. I make my payments on-line through my bank and they maintain records of all payments. I have documented that payments have been received ( proof by signature of WaMu employee of overnight delivery) yet the payment was not posted to my account until two weeks later. I am currently investigating the possibility of a class action lawsuit against this outfit. I have also filed a complaint with the office of thrift supervision to have the Feds investigate the prctices of this company."|
|Proland wrote: "I was so happy 3 years ago, when I finally cancelled all my accounts with Washington Mutual due to their complete incompetence. Mush to my dismay however, my home mortage loan was purchased by them, and I have to deal with them again! |
I have to call them about every other month due to unexplainable late fees and missing payments. The latest headache is the statement I received today. The statement is dated 12/11/01, and imposes a late fee for a payment due 12/17/01. They are charging a late fee 6 days before the payment is due!!! The payment cleared on 12/14/01, so I'll have to call them again. Avoid Washington Mutual at all costs. By the way, there are several class action suits against them for mortgage late fee abuse and inappropriate charges."
|nombody wrote: "Don't let them Escrow your taxes"|
|svickner (vickner@hotmail) wrote: "I have been told that there are over 200 people in our town alone that are going throught the same dilemma. Maybe this is grounds for a class action lawsuit since WAMU is collection our money and not paying our taxes."|
|gvickner wrote: "I have never witnessed such incompetence in my life!!!!!!!!!!|
|JIMJOHN wrote: "I have been waiting (not patiently) for almost 5 months for WAMU to apply my payment for July. I have talked to more than 15 people in at least 4 states as has a representative of my bank who is trying to help. They said it would be settled by Oct 19 then I was told they cancelled all work orders because they had too many to handle. Then they opened the work order again and said it would be settled by Nov 9. On Nov 9 they told me they put the w/o on ESCALATE and would put a temporary payment to my account. Another lie. Are these people in financial trouble and holding a bunch of payments to make their cash flow better. My advice if you hear Washington Mutual---- run, don't have anything to do with them."|
|porear wrote: "Misplaced my funds, I've spent numerous hours on the phone (mostly on hold and getting transferred) and after 5 weeks they still can't correct my balances, even after their "escalation team" was on the job. In the meantime my account shows delinquent."|
(email) email@example.com at www.angelfire.com/biz2/WashingtonMutual/ says:|
"Washington Mutual is Unfair
Boycott Washington Mutual"
"this statement comes from my 15 years of experience in the Banking Industry. I am seeking any and all Ex-Employees of Coast Federal Bank, Home Savings Bank and Washington Mutual Employees that were affected by the Washington Mutual take over of Home Savings. "|
"I Feel Washington Mutual Cheated Me, a Single Mother of two, out of over $8,000.00"
|Check out More Complaints from many others posted on Angelfire.com|
|The host (firstname.lastname@example.org) states: "The Funny thing about this Internet site is that never once has Washington Mutual ever E-mailed us.You would think that with the thousands of vistors that have visited us that Washington Mutual would try to make things right. I really think they don't care! We challenge Washington Mutual to make a rebuttal. "|
|YosemiDee@aol.com wrote: "I have never had such bad service at a bank before. In early May I received a notice for fees due for my safe deposit box. I hand carried my check into the branch and paid the fee. Mid July I received a LATE NOTICE from Washington Mutual stating that my payment was late and that I owed an additional $5.00 for a late fee. I ordered a copy of my cancelled check and again hand carried it into the branch and spoke with the manager (after having to wait for 30 minute before I was helped.) She made copies of all of my paperwork and said it would be taken care of. This was mid July. I asked the manager at that time to send me a confirmation that my account was cleared. A month later and I still have not received anything from them."|
|Tonya Yorke wrote: "No one seems to know who is responsible for a debit card transaction that is taken out of the account, put back in, taken out AGAIN, then put back in two times more! The vendor nor the bank could claim responsibility. So, I told them I was going to the bank, withdrawing the balance that they say I have (subtracting outstanding checks) and closing my account. That they better take note because they just screwed themselves out of $200.00 and because they can not tell me who is doing it and that it won't happen again."|
|Someone wrote: "My residence was mistakenly zoned commercial, not residential by Cook County. Commercial is 33% and Residential is 16%. So for every two dollars I pay in property tax I should be paying one. Now this is not WMs fault. But after court proceedings to get the status of the property changed successfully, I tried to talk this over with WMs tax department. How astonished I was to find out you can only fax them, and I have. Imagine not being able to talk to a very important part of your mortgage company! I have sent them documentation from the courts and requested that my mortgage be recalculated. I have asked to reply by phone, letter or fax. It is as if my request has fallen on deaf ears."|
|"Krystee" (BettiePage@rhy.com) wrote: "I was stupid enough to open a new account with my divorce settlement. I opened it with a large check--A CERTIFIED LOCAL CASHIER'S CHECK--, this was all I have to support myself and my two year old daughter. They are holding the check for eleven days. They refuse to call the local issuer of the CERTIFIED FUNDS and verify it, so guess what? They are earning interest on my check, I am bouncing checks, but I can't feed my daughter or put gas in my car, simply because they won't perform some basic customer service that ANY OTHER BANK would. Did they tell me this when I opened the account? NO! No matter who I call, no one will help me, this is their policy and they stand by it."|
|"Lindsay Davis" (email@example.com) wrote: "I decided to open up a "Free" account at Washington Mutual, and within 4 weeks of doing so, I received a letter stating that Washington Mutual was closing my account. The letter gave no reason or explanation whatsoever as to why my account was being closed."|
|"letsgo420" wrote: "July they deducted a check from my account twice. This caused me to be off in my books, thus in turn one bad check turned into many over the months. When all of a sudden I was over 600.00 over drawn I went in and requested a total print out of my statement, which over three months was a total of 340.00 in just bounced check fees. This took me days to go over and trace back, only to find the cause of the missing money was their fault. Washington Mutual was not very helpful"|
|NEENEE510@aol.com wrote: "if you deposit through the ATM" ... "they are holding those funds for 2 WEEKS!!!! Forget living paycheck to paycheck. I called my bank" ... "this morning again and talked to someone in the branch. I said to her,"This just started happening didnt it?" She agreed. I then asked,"Did anyone ever send us customers notice that this was happening?" The answer was ,"No" But, yet they take a fee of $18.00 for there incompetance. Its not posted on the ATM that they hold it for 2 WEEKS EVEN. WASHINGTON MUTUAL DOES NOT CARE FOR ITS NEW CUSTOMERS THAT THEY BUY THROUGH THESE SUCKY MERGERS!! I AM TAKING MY $ SOMEWHERE ELSE."|
|Jeff Brill (of South Florida Water Management District) wrote: "WE HAVE ALWAYS HAD GOOD CREDIT. WASHINGTON MU, DENIED OUR APPLLICATIONS BECAUSE THEY CLAIM I HAVE NO JOB, AND WE HAVE BAD CREDIT. THIS IS BULL SHIT, MY PAY CHECK IS DEPOSITED INTO A ACCOUNT IN WASHINGTON MU. ALSO OUR CHECKING ACCOUNT IS THERE AND THEY CAN SEE DAM WELL THAT WE PAY OUR BILLS, WE GET OFFERS FROM OTHER OUT OF STATE BANKS FOR CREDIT LINES. SO WHY CAN'T WE GET THE LINE OF CREDIT SIMPLE MY WIFE AND I ARE MINORITY"|
More Class Action lawsuits:|
|http://www.coudert.com/practice/washmutualarticle.htm (Washington Mut. Bank v Superior Court (2001) 24 C4th 906, 103 CR2d 320, could be greeted as a victory for class action defendants. First, it forces trial courts to take a hard look at the commonality and manageability issues at the class certification stage, rather than postponing that examination until a motion for class decertification. Second, it suggests that California courts should not bear the burden and expense of nationwide class actions, but that class action plaintiffs should seek redress—at least for some claims—on a state-by-state basis. Third, by permitting enforcement of choice-of-law provisions in adhesion contracts, the decision encourages consumer-related companies to do business in California because they need not fear that choice-of-law provisions will necessarily be ignored.)|
|http://www.cmht.com/casewatch/consumer/washmut.html [Cohen, et al above] (2 articles:
Litigation Against Washington Mutual Bank Pursued By Homeowners Whose Mortgages Have Been Improperly Processed - March 6, 2002|
cmht.com/casewatch/cases/cwwashmut2.htm Cohen Milstein Representing Plaintiff in Litigation Against Washington Mutual (only) for Predatory Practices in Mortgage Services
cmht.com/casewatch/cases/cwwashmut.htm Cohen Milstein Representing Plaintiff in Litigation Against Washington Mutual and Bank United Corp. for Predatory Practices in Mortgage Services
|http://seattlepi.nwsource.com/business/56299_wamu30.shtml [Green, Fauth, et al above] (class action on behalf of homeowners nationwide. The lawyers claim that Washington Mutual fails to process mortgage payments on time, doesn't properly handle electronic payments and neglects to maintain accurate records.)|
|http://www.dearborn.com/download/calawcases/Chapter10.htm (Washington Mutual Bank v. Superior Court (1999) 75 C.A.4th 773.|
This case was a class action suit alleging that Washington Mutual Bank inflated charges beyond actual costs for loan-related services. As an example, $50 was charged for a credit report that only cost $15. Charges were also allegedly inflated for tax services, flood certification, wire transfers, appraisals and recording. The class action suit sought damages for unfair and deceptive business practices (Business and Professions Code 17200), unjust enrichment, breach of fiduciary duty, conversion and negligence.
The lender filed a demurer arguing that state law claims should be dismissed since RESPA and Regulation X (good faith estimate) preempt state law and neither provides for a private right of action for violations. Washington Mutual took the position that there was no prohibition against adding a charge to the actual costs.
The Superior Court ruled that RESPA and Regulation X do not preempt state law. This decision was affirmed by the Court of Appeal The case was remanded to trial on its merits.
The Court of Appeal noted that state laws are preempted only if they are inconsistent with RESPA or Regulation X. Congress had declared that no state law shall be determined inconsistent if it provides greater protection to the consumer.)
http://freecaselaw.com/ca/G023218.htm Order to Publish
http://freecaselaw.com/ca/G023218M.htm (request that the opinion be depublished is DENIED.)
(""We sent them a payment and had it returned due to 'no loan Number written on the check' and charges followed," wrote a Medford, Oregon borrower. "We sent them our check again and once again they returned it as they wouldn't accept it because now it was a 'partial' payment compared to the Legal and collection charges they imposed upon our loan.")
("One borrower copied MortgageDaily.com on a letter to WaMu's CEO, Kerry Killinger, suggesting that WaMu's lack of response to her requests have only made her delinquency worse. She further suggested that WaMu uses chronically late paying borrowers as "a reliable source of revenue for companies as Washington Mutual, which reap millions of dollars in late fees.")
|http://www.bigclassaction.com/alphabetical.html (Join suit for Washington Mutual (misapplying funds to work in their favor))|
|http://www.spacecoasthomes.com/financing/bruss/law/1999/law1212.htm (in Florida Court, Judge allows borrowers to sue lenders - class action borrowers sued for damages due to (1) unfair and deceptive business practices, (2) unjust enrichment, (3) breach of fiduciary duty, (4) conversion, and (5) negligence. |
Washington Mutual argued that the claims should be dismissed because the federal Real Estate Settlement and Procedures Act preempts state laws and there is no federal private right of action for RESPA violations. Washington Mutual also argued that RESPA does not prohibit lenders from adding extra charges onto the actual costs of services obtained from third parties such as credit bureaus.
IF YOU WERE THE JUDGE would you rule the federal RESPA law prohibits home loan borrowers from suing lenders in state courts for overcharges?
The judge said NO!
The primary purposes of RESPA, the judge explained, are to prevent illegal kickbacks and rebates, as well as to inform home loan borrowers of their complete costs. These disclosures are made to borrowers on HUD-1 forms, he noted.
Neither RESPA nor Regulation X, which sets out the rules for the good faith estimate of loan charges, expressly preempts private borrower rights of action under state laws for violations, he emphasized. If borrowers were prohibited from suing lenders in state courts for alleged disclosure violations, consumers would be left without any practical legal remedy, since RESPA does not establish a private right of action under federal law, the judge added.
More on RESPA Law in California:|
www.courtinfo.ca.gov/opinions/nonpub/D027378A.DOC (LA unpublished)
www.onlinedocuments.com/library/newsletters/Apr2000.pdf (HUD's Q&A Answers to RESPA issues in Calif Court Case Brown v. Washington Mutual Bank, FA) Copy of Suit Brown v. WaMu (LA Co, Sup BC 192874)
For More On Class Action Lawsuits against Washington Mutual, search on Google or AltaVista, etc:|
Google search for +"washington mutual" +"class action"
When I entered into the Mortgage, I thought that the Bank was "Loaning" me funds from Depositors.|
I thought that because there was a risk to Depositor funds, the interest rate charged was justified.
Most others believe the same, and this is considered "Generally Accepted Accounting Principles" (GAAP) by CPAs and other accountants.
The agreement called for a repayment of over $300,000 over a period of 30 years for a "Loan" of $144,000. Is this usurious, if they never lent me their own money, and risked nothing?
After reading Tom Schauf's Books at BankFreedom.com,
|I recommend buying Tom Schauf's 2 books ($20 each) at Order:|
America's Hope To cancel bank loans without going to court &
The American Voters Vs. The Banking System The technical guide to America's Hope.
(They are easy to read, but often repetitious).
I did not find his additional $400 package as worth while as DueProcess.org.
|I am finding DueProcess.org to actually have more concrete help.|
Their materials are $500, plus $700 per 5hr chunk of direct consultation/help. You can buy additional guarantees separately (cost $1,000 per $25,000 guarantee, in addition to the costs of books and help). They will not guarantee to stop foreclosure, but they can help with everything else.
|CPA Opinion Letters from other CPAs, which explain the actual exchange (not loan) process can be enlightening in court. You should hire a CPA to testify and explain the process in court, as well. I'm using a great CPA here, near LA.|