World Savings, Wachovia Sued Again For TILA Violations; Class Action Status Sought

In Charleston, South Carolina, The Charelston Post and Courier recently reported:

• A Berkeley County homeowner is suing her mortgage lender in federal court, claiming she was sold a risky loan with a low teaser interest rate but was not told how the payments would increase over time or how the loan actually worked. Bonnie Mincey of Hanahan said in court papers that in May she refinanced her home and entered into an adjustable rate mortgage called an "Option ARM."

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• The suit was filed Nov. 16 in U.S. District Court in Charleston and names as defendants World Savings Bank FSB of Oakland, Calif., and Golden West Financial Corp. and Wachovia Corp., both of Charlotte. [...] Her attorney, Daniel O. Myers, said Tuesday he believes his client is not alone. He is looking to expand the case to other Option ARM borrowers by seeking class-action status.

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• The lawsuit alleges the defendants violated the federal Truth in Lending Act ["TILA"] by failing to "clearly or accurately disclose the terms of the Option ARM loan" and provided conflicting interest rates when describing the costs of the loan.

Representing the homeowner is attorney Daniel O. Myers with the law firm Richardson, Patrick, Westbrook & Brickman LLC, with offices in Mount Pleasant, Charleston, and Barnwell, South Carolina.

For more, see Mortgage lender named in lawsuit.

To read the lawsuit, see Complaint - Mincey v. World Savings Bank, et al.; or go here for direct link to the lawsuit on the PACER system (21 pages @ $.08/page; PACER registration required),

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For a story on another Federal lawsuit filed by a homeowner against Wachovia and World Savings in a California Federal Court, see Homeowner Files Suit Against Wachovia, World Savings For Deceptive "Option ARMs"; Seeks Class Action Status.

Go here for more posts on homeowners who have refinanced into bad mortgage loans and are now using the Federal TILA to try and undo bad loans. undo mortgage loans TILA alpha