Class Action Lawsuit Filed by Charles Schwab Against Affiliates of Mortgage Company that collapsing
There are currently three major class action lawsuits that have been brought against Schwab Bank and the two other largest US banks. If you are a current Schwab customer, there is a chance that you have already received a settlement or have an ongoing claim with another bank. Many customers who are not satisfied with their current bank have taken the matter to court. A large number of customers have received settlements for millions of dollars and will be greatly rewarded. The three major class action lawsuits will be discussed in detail below.
Charles Schwab Lawsuit
The first case involves an individual who has been a long term customer to Schwab and later had their account closed and the money returned to them. In the second case, a former Schwab Bank employee has filed a lawsuit against the bank which allows him to receive payments from the sub-prime mortgage mess that the entire Countrywide Group is currently dealing with. In the first case, the lawsuit was filed by a former regional manager of Schwab, while in the second case it was an attorney who filed the suit. According to the complaint, the Countrywide Group forced the two banks to close accounts of customer’s without just cause and this caused a great deal of stress to the two banks. This is the main reason that the lawsuit has been filed.
Class Action Suit Number One involves a former customer of Schwab Bank who had an account closed due to non-payment of their monthly bill.
This was after the customer had been repeatedly warned that they would face collection calls unless they paid their bills. When the customer’s account went into liquidation, no action was taken to retrieve payments from the account and the funds were sent to a collection agency. The customer then filed a class-action lawsuit against the bank, which allowed him to receive a large amount of money which is expected to cover the costs of his legal counsel.
Class Action Suit Number Two involved a former customer of American Express who had an account closed because he had missed several payments.
He was not able to make the payment when it was due and the bank did not verify the payment when they received it. A check was mailed to American Express for the amount of the missed payment and when the customer tried to cash the check, they were notified that the check was a NOD. Not a single person from American Express was ever called to verify if the payment was received by the company.
These are just two of the many Class Action Suit filed by customers who have been wronged by the sub-prime mortgage market bust.
Many people lost their homes and the bank who lost money on the investment made it up through selling the homes for pennies on the dollar. It took a long time to fix the mess and these people are left with nothing but regrets. Charles Schwab has stood up for these people and gave them the representation that they need so that they can get the compensation that they deserve.
Charles Schwab has also made sure that when the government tries to regulate the mortgage-backed securities market that they do not touch the CFTC.
The CFTC is an independent entity that works for the customers. If it was gutted, the customers could go to the government for help and the government would give them the money that they need to fix their homes. Schwab has gone as far as to file a Class Action Lawsuit against the companies involved in the sub-prime mortgage-backed securities fraud. This is the type of representation that most people need when they are wronged by the mortgage industry and the scam artists associated with it.