LendingTree Loans Faces Two Class Actions

LOS ANGELES (CN) - LendingTree faces two class actions in Federal Court, one accusing it of illegally selling or distributing consumers' confidential financial information to five mortgage lenders, and a RICO claim accusing it of charging illegitimate closing costs.

Plaintiffs in the first case say LendingTree sold or gave their private information to co-defendants Newport Lending Corp., Sage Credit Co., Home Loan Consultants, Chapman Capital, and Southern California Marketing Corp.

They demand damages for fair credit violations, privacy invasion, misappropriation, negligence and breach of implied contract.

Lead counsel in this case is Rosemary Rivas with Finkelstein Thompson of San Francisco.

In the separate RICO complaint in the same court, plaintiffs claim Lending Tree Loans defrauded them by padding closing costs. Subclasses of these plaintiffs claim that LendingTree deceived them about negatively amortizing option adjustable rate mortgages it sold, and say LendingTree forced them to take out home equity credit lines to receive their option ARM loans.

These plaintiffs' lead counsel is Michael Reese with Reese Richman of New York, N.Y.

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