IRVINE, Calif., Oct. 11 /PRNewswire/ -- The law firm of Teuton, Loewy &
Parker LLP announced today that it filed a nationwide class action against
LendingTree, LLC and its wholly-owned subsidiary, Home Loan Center, Inc.,
on behalf of consumers. The class alleges that LendingTree, LLC and Home
Loan Center, Inc., which does business as "LendingTree Loans," have engaged
in unfair business practices and false advertising. The complaint was filed
in Orange County Superior Court on October 11, 2006.
LendingTree's familiar slogan is: "When banks compete, you win." With
this slogan, LendingTree styles itself as an online lending exchange that
connects borrowers to a network of lenders that allegedly "compete" for the
borrowers' business. The lawsuit alleges, however, that in thousands and
thousands of cases there is no such competition at all; rather, LendingTree
uses its LendingTree.com website and false advertising to generate leads
for its wholly-owned, direct-lending division, Home Loan Center, Inc.
Specifically, the lawsuit alleges that LendingTree's website attracts
over 70,000 potential borrowers per month by touting LendingTree as a loan
origination service that is not a lender, and claiming that LendingTree's
"origination" service allows lenders to compete for borrowers' business.
The lawsuit further alleges that LendingTree secretly diverts many
LendingTree.com leads to its subsidiary, where unsuspecting borrowers are
sold loans at inflated prices based on the materially false representation
that "competition" has occurred among lenders.
According to the lawsuit, borrowers are deceived into believing that
they need not shop for a better loan rate because LendingTree has already
done the shopping for them through use of its lender "network." In truth,
the lawsuit alleges, LendingTree uses the "when banks compete, you win"
slogan as a gimmick to attract unwary borrowers and sell them loans through
the company's direct-lending division at inflated prices and without any
such competition.
The class action seeks declaratory and injunctive relief, millions of
dollars in compensatory and punitive damages, restitution, and attorneys'
fees.
A related lawsuit was filed on September 15, 2006 by Fadel Lawandy, a
former mid-level executive of LendingTree who was fired for alleged
"insubordination" after he complained about LendingTree's business
practices.
If you have any information about this matter, you may email Teuton, Loewy
& Parker LLP at LendingTreeinfo@tlpfirm.com or you may contact the firm as
follows:
Mark C. Teuton, Esq.
TEUTON, LOEWY & PARKER LLP
3121 Michelson Drive, Suite 250, Irvine, CA 92612
Tel: (949) 442-7100
Fax: (949) 442-7105
http://www.tlpfirm.com
Teuton, Loewy & Parker LLP ("TLP") is a Southern California law firm.
TLP is actively engaged in complex litigation, including class actions
brought on behalf of consumers and employees. TLP's capabilities in these
fields are based upon the talents and extensive experience of its
attorneys, who have litigated class actions in state and federal courts
throughout the country.
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SOURCE Teuton, Loewy & Parker LLP
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Related links:
http://www.tlpfirm.com
CONTACT:
Mark C. Teuton, Esq. of Teuton, Loewy &
Parker, +1-949-442-7100, or fax, +1-949-442-7105,
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