National City Mortgage Pays $700, 000 Settlement in Class Action Lawsuit
In 2008, the law firm of Bailey & Glasser obtained a settlement from National City Mortgage for 2,859 plaintiffs in a class action lawsuit.
The complaint against the Ohio lender was that they were issuing illegitimate late fees by charging more than once for overdue payments, a practice which is illegal in the state of West Virginia. National City petitioned the court that the case be dismissed citing federal laws that they believed would override individual state restrictions such as the ones in West Virginia but in the end decided to settle the case.
The other charge brought against National City was for employing "abusive debt collection practices" and refusal to credit partial payments. While the fees were often nominal once borrowers were declared in default, they could be thrown into foreclosure.
All in all the company agreed to pay a $700,000 penalty and $151 dollars for double late fees and refused payments. According to the Charleston Gazette at least 60 plaintiffs with multiple complaints against the company received recoveries of $1000
The 2008 case against National City Mortgage is just one of the many lawsuits the attorneys of Bailey & Glasser have pursued on behalf of consumers. Right now they are in the national spotlight for their work on the Toyota class action lawsuit surrounding sudden acceleration. Attorney Ben Bailey was appointed as one of nine lawyers nationwide to the Plaintiffs' Counsel Committee for Economic Loss in the national lawsuit filed against Toyota Motor Corporation.
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December 11th, 2010 - 14:50
I have a loan with national city mortgage and since the very beginning they have made mistake on my loan repayment process as a result I had to file bankruptcy to avoid foreclosure. I am very upset because I have always tried to do the right thing and this company has caused me a major set back!
May 29th, 2011 - 17:26
I was persued by NCM way back in 2003 for 7 late fees even as I made double payments. I sent them the front and back of every check showing they cashed the checks with in three days of receiving them, ever late on the MIRC. They retaliated by refusing payments and escalating a foreclosure against me. The Utah Judge ignored evidence, ignored perjury, etc when I had no attorney willing to help and gave the title back on 6499 Daffodil Way, West Jordan Utah 84088 with a Notice to quit by a robosigner. They even ignored the 90 day FHA waiting period. Now I understand that NC bank went out of business in 2006, and NCM went out of business or is doing business under PNC Bank. It is clear they were acting in bad faith to honor a 30 year fixed rate mortgage due to their financial gaming of the system. My mortgage was never underwater. I pay more in rent than I did monthly on the house.