Frozen HELOC Trifecta: Top 3 HELOC lawsuits…and they’re off!
September 16th, 2009. By AbiK
HELOC (Home Equity Line of Credit) accounts hit critical mass this week—or so it would seem if you’ve been following the legal news. Here’s the low-down on the HELOC trifecta:
1. SunTrust HELOC accounts.
Issue: Disappearing HELOC accounts with no real warning and, more importantly, no apparent reason. Lawsuit’s been filed. Part of issue—the pull on the heartstrings part–is that many of those affected by the allegedly freezing of accounts are elderly.
2. Wells Fargo HELOC accounts.
Issue: Reduced HELOC account balance due to improper use of a faulty computer model. Plaintiff Michael Hickman also claims Wells Fargo failed to properly notify him of the HELOC reduction. Hickman’s suit is seeking class action status.
3. JP Morgan Chase HELOC accounts.
Issue: Frozen HELOC accounts based on falsified home appraisals that showed decreasing home values to justify the freeze. Class action lawsuit plaintiff Pascal Majon alleges his account was frozen while the value of his home did not decline. The lawsuit also alleges that Chase did not provide customers with legally required notice of the impending freeze.
