Thursday, October 12, 2006
A southern California law firm has filed a class-action lawsuit against LendingTree and its subsidiary, Home Loan Center Inc.
A southern California law firm has filed a class-action lawsuit against LendingTree and its subsidiary, Home Loan Center Inc.
It alleges that the companies engaged in unfair business practices and false advertising.
LendingTree's Web site touts the company as a loan-origination service that allows lenders to compete for borrowers' business. But the lawsuit contends LendingTree diverts LendingTree.com leads to its subsidiary, which conducts business under the name LendingTree Loans without any competition.
There, the suit says, borrowers are sold loans at inflated prices based on the false representation that competition for the business has occurred among lenders.
1 comments:
I have been informing the public about websites that simply sell prospective borrowers information since 2003. It is unfortunate that so many people in this country accept advertising as truth; the When Lenders Compete is a very good example. As marketing goes, it is a brilliant campaign, but in practice it is far from the truth. The fact is, with a LendingTree application, a borrower really has no idea who is gaining access to their personal information. With the problems we face today with identity theft, it amazes me that people are trusting of such a business model. At www.Mortgage123.com, information is viewed by a single contact - a highly trained and experienced mortgage adviser who reviews all particulars of a potential borrower. Only after such an analysis is performed is the loan submitted to a lender. And the lenders in the Mortgage123.com network are all major national lenders that everyone knows. Only this way can a borrower be fully protected.
Post a Comment