Class Action Lawsuits
There was a class action lawsuit against Hausa mortgage company filed in Florida in 2009. The complaint charged that the Hausa Mortgage Company had charged a substantial sum to pre-approved subprime mortgage loans to individuals without performing any investigation of whether these loans were actually worth the amount that they had been charged. When the homeowners tried to refinance their Hausa mortgages, the lending institutions in Florida changed their underwriting criteria and now require borrowers to undergo a more rigorous evaluation of their credit worthiness.
As a result of this new requirement, many people filing for a refinance are being turned down. This suit was eventually decided by the Florida Supreme Court, which found that Hausa had improperly charged fees to pre-approved borrowers that later found out that they could not qualify for a loan because of poor credit or failing to demonstrate an ability to repay the loan.
Class Action Lawsuit Against HSBC Mortgage
As expected, this ruling has caused a flood of class action lawsuit against Hausa mortgage company attorneys. While a majority of these suits have been consolidated into large general lawsuits against the entire company, there have been a few class action lawsuits filed against individual attorneys who handled the case. One such lawsuit was filed against Johnnie R. Smith, a lead attorney who handled the lawsuit against Hausa. Mr. Smith is now being sued by his former client, alleging he provided inaccurate legal advice leading to a default judgment being entered against his client.
Another case involves a case of fraud brought against Countrywide Bank.
A group of Countrywide employees conspired to defraud the Bank of $1.2 million in fees by charging them for services they never performed. A class action lawsuit against Countrywide Bank was later filed by attorneys. These lawsuits accuse Countrywide Bank of falsely maintaining that it had not charged these fees, when it did so and of instructing employees to do so in order to avoid paying the fees. A number of claims have been upheld as of date. In one instance, the court found that Countrywide had actually instructed its employees to falsify accounts and conceal transactions.
Claims have also been lodged against attorneys who handled the lawsuit against Hausa.
Some claims against Hausa are being pursued on the basis that the company intentionally waived its rights by allowing an employee to represent himself in a class action lawsuit. The complaint states that this caused harm to the plaintiff because the employees had been unsuccessful in getting any compensation from Hausa. This is similar to the complaint that was filed against Countrywide. The class action lawsuit against Hausa involved a case of fraud.
Class action lawsuits against Hausa mortgage company attorneys have also resulted in large financial losses to their clients.
Class actions are intended for large financial amounts, but they do have some benefits. One of those benefits is that a large number of people are involved in the lawsuit, which means that the court case is able to become more complex and difficult to handle. It is also much easier for the judge to award compensation to the class because of the size of the class.
In addition to being one of the most common types of class action lawsuit, another type is revolving.
A class action lawsuit revolving around a specific situation keeps the case moving forward. In one example, a class action lawsuit revolving around an automobile accident has been going on for years. Each month, new details about the accident are revealed. The case has already cost millions of dollars and will cost even more money until the case is settled. The case may never end because new details about the accident are uncovered each month.
