On October 17, 2021, in the Southern District of New York, the U.S. District Court, Southern District of New York issued an order allowing PNC Bank Class Action Lawsuit to proceed against CitiMortgage Funding LLC and Countrywide Financial Corporation. On or about September 30, 2021, the undersigned complaint was filed against PNC Bank, charging that the bank’s direct and indirect mis-selling of PNC home finance products to Countrywide and CitiMortgage Funding caused consumers to suffer injuries. The complaint further alleged that Countrywide and CitiMortgage Funding knew or should have known that their deceptive and misleading conduct would subject them to the provisions of the Fair Debt Collection Practices Act (FDCPA). The complaint further claimed that Countrywide and CitiMortgage Funding violated the FDCPA’s anti-speclosure and anti-retriever statutes and deceived and failed to provide informed consent to the borrowers as required by the law. On or about October 10, PNC Bank was served with the complaint letters.
Citing that this was a newly proposed class action settlement and that there were many issues to be resolved at a final approval hearing, on or about December 8, 2021 the court entered a summary judgment in favor of PNC Bank. The undersigned complaint was submitted to the court on or about December 6, 2021. On or about March 7, the undersigned complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania. On or about April 7, the court entered its final approval ruling approving the complaint and granting class action status to PNC Bank.
On or about May 3, PNC Bank filed a motion to dismiss the complaint with the court. On or about May 8, the undersigned filed an answer to the complaint denying the class action lawsuit settlement agreement and defects in the Class Certification Notice. On or about June 5, the undersigned again filed an answer denying the complaint that it had failed to disclose material facts in the complaint, failing to prepare the financial statement properly and failing to apprise the borrowers of the risks they faced upon the purchase of the deficient loans. Finally, on or about August 4, the undersigned filed a third answer denying the complaint that the bank’s application for final approval was improper. On or about September 4, the case was submitted to the court for final approval hearing.
On or about October 7, the court entered its written order approving the complaint and dismissing the complaint with prejudice. On or about December 7, the undersigned notified the court that it had received the written notice of dismissal. On or about December 8, counsel for PNC Bank notified the court that the bank would file a report in the district court of claims setting forth its objections to the complaint and offering an explanation for its failure to object to the class action lawsuit. The bank filed this report on or about December 10.
Pursuant to the terms of the final approval of the complaint and the order granting final approval of the complaint, the plaintiffs were directed to resume their claims in three months. However, on or about March 6, the bank notified the court that it would file a supplemental statement in the district court regarding the claims set forth in the complaint and that the plaintiffs would have until such time as the court approved the supplemental statement to object to the claims. On or about March 7, the plaintiffs filed their objections to the complaint. On or about March 8, counsel for PNC Bank stated in a court filing that the bank would file its answer to the complaint in three months.
Accordingly, on or about April 3, the court entered an order granting preliminary approval of the complaint and dismissed the complaint with prejudice. On or about April 5, the proposed settlement terms were disclosed to the plaintiffs. On or about April 9, counsel for PNC Bank notified the court that the bank was now submitting revised class action settlement terms to the plaintiffs. The revised class action settlement terms will be submitted to the court at the earliest possible date.