AmeriSave Mortgage Lawsuit: Did They Bait-and-Switch You
Have you ever considered buying a house and used Amerisave Mortgage for your loan? If so, you might want to pay attention to this. In recent years, Amerisave Mortgage has been at the center of several lawsuits alleging deceptive practices and unfair treatment of borrowers.
What are the key allegations against Amerisave Mortgage?
Bait-and-switch advertising: The Consumer Financial Protection Bureau (CFPB) accused Amerisave of offering low mortgage rates to attract customers, but then charging higher rates at closing. This practice, known as bait-and-switch, is illegal and can cost borrowers thousands of dollars. ^1
Unfair fees: The CFPB also found that Amerisave charged borrowers excessive and unnecessary fees. These fees can add up quickly and make it difficult for borrowers to afford their mortgage payments. ^1
Unpaid wages and defamation: In 2022, over 100 former employees filed a lawsuit against Amerisave, claiming the company failed to pay them wages and bonuses. They also accused Amerisave of defamation, alleging the company told other employers they had not performed well. ^2
What are the consequences for Amerisave?
The CFPB ordered Amerisave to pay $19.3 million in relief to borrowers harmed by their practices. This includes $14.8 million in refunds and a $4.5 million penalty. ^1
Amerisave also faces ongoing class-action lawsuits from borrowers and former employees. These lawsuits could result in additional penalties and damages. ^2
What should you do if you think you were affected?
If you used Amerisave Mortgage for a loan and believe you were charged excessive fees, offered deceptive rates, or unfairly treated, you may be entitled to compensation. Here are some steps you can take:
Review your loan documents: Carefully review your loan documents to understand the fees you were charged and the interest rate you were offered.
Contact the CFPB: You can file a complaint with the CFPB online or by phone. The CFPB can help you understand your rights and options.
Join a class-action lawsuit: Several class-action lawsuits are currently pending against Amerisave. Joining a class-action lawsuit can be a way to recover your losses without having to file your own lawsuit.
Seek legal advice: Consulting with an attorney familiar with consumer financial protection laws can help you understand your legal options and determine the best course of action.
Should you avoid Amerisave Mortgage?
While the lawsuits against Amerisave are concerning, it’s important to remember that these are just allegations. The company has denied any wrongdoing and is fighting the lawsuits.
Ultimately, the decision of whether or not to use Amerisave Mortgage is a personal one. You should weigh the potential risks and benefits carefully before making a decision.
Stay informed and protect yourself:
It’s important to stay informed about the latest developments in the Amerisave Mortgage lawsuits. This will help you make informed decisions about your mortgage loan.
Remember, you have rights as a borrower. If you believe you have been treated unfairly, don’t hesitate to take action.
References:
Sources
www.reddit.com/r/personalfinance/comments/m0vhxe/loan_officer_trying_to_