In 2018, a class action lawsuit was filed against Mortgage Lender of America by the plaintiffs, including Charbonneau, alleging that the lender had engaged in predatory lending practices that resulted in financial harm to the borrowers. The lawsuit was filed in the United States District Court for the District of Maryland.
The Claims
The plaintiffs alleged that Mortgage Lender of America had violated several federal laws including the Truth in Lending Act, the Fair Housing Act, and the Equal Credit Opportunity Act. The lawsuit claimed that the lender had engaged in discriminatory lending practices, such as charging higher interest rates and fees to borrowers based on their race, ethnicity, and gender.
The plaintiffs also alleged that the lender had engaged in predatory lending practices, such as encouraging borrowers to take out loans that they could not afford and then foreclosing on their homes when they defaulted on the payments. The lawsuit claimed that the lender had engaged in these practices in order to maximize their profits, without regard for the financial well-being of the borrowers.
The Settlement
In June 2021, it was announced that the parties had reached a settlement in the case. Under the terms of the settlement, Mortgage Lender of America agreed to pay $7.5 million to the plaintiffs. The settlement also included injunctive relief, requiring the lender to adopt policies and procedures to prevent discriminatory and predatory lending practices in the future.
The settlement was approved by the District Court in August 2021, and the case was dismissed with prejudice, meaning that the plaintiffs cannot bring the same claims against the lender again. The settlement is a significant victory for the plaintiffs, who have been fighting for justice for several years.
The Impact
The settlement is expected to have a significant impact on the lending industry as a whole. It sends a message to lenders that discriminatory and predatory lending practices will not be tolerated, and that they will be held accountable for their actions. The injunctive relief included in the settlement will also require Mortgage Lender of America to adopt policies and procedures that will promote fair lending practices and protect borrowers from financial harm.
The settlement is also a reminder of the importance of class action lawsuits in holding corporations accountable for their actions. Class action lawsuits allow individuals who have been harmed by a company’s actions to come together and seek justice. Without class action lawsuits, many individuals would not have the resources or the ability to take legal action against large corporations.
Conclusion
The settlement of Charbonneau v Mortgage Lender of America is a significant victory for the plaintiffs and a reminder of the importance of holding corporations accountable for their actions. The settlement sends a message to lenders that discriminatory and predatory lending practices will not be tolerated, and that they will be held accountable for their actions. It also highlights the importance of class action lawsuits in promoting justice and protecting the rights of individuals who have been harmed by corporate wrongdoing.