Harwood Feffer LLP Files Class Action Against PNC Bank NA, For Collection of Improper HELOC Subordination Fees
Wednesday December 29, 2010
Lawsuit Alleges That HELOC Agreement So Vague As To Be Unenforceable
New York, New York, December 29, 2010 – The law firm of Harwood Feffer LLP (www.hfesq.com) today announced that it filed a class action lawsuit against PNC Bank, NA, a wholly-owned subsidiary of PNC Financial Services Group, Inc. (“PNC” or the “Company”), for its practice of improperly charging subordination fees relating to home equity lines of credit (“HELOC”) underwritten by the Company.
The lawsuit, filed in the United States District Court for the Western District of Pennsylvania, Essig v. PNC Bank, NA, Index. No. 2:10-cv-1738-WLS, alleges that PNC improperly and unlawfully charged and/or overcharged HELOC borrowers subordination fees without authority to do.
PNC is one of the nation’s top home equity lenders with approximately $35.0 billion in loans outstanding. In PNC’s HELOC Agreements, the Company states that if it is requested and it agrees to subordinate its lien position to “another creditor” then it will change the borrower a fee (in the Plaintiff’s agreement, that fee was limited to $100). The term “another lender” is not defined and it is unclear whether it means a creditor other than one PNC was already subordinate to (i.e., as a result of a refinance with the same lender) or any creditor other than PNC. Because of its patent ambiguity, the Complaint alleges that the subordination fee provision is unenforceable as a matter of law. Upon information and belief, PNC routinely charges and overcharges its HELOC customers subordination fees.
A copy of the complaint is available on the firm’s website (http://www.hfesq.com) or can be obtained by contacting the firm. If you believe you were a victim of PNC’s subordination fee scheme, you may be part of the proposed class. For more information on this case, you may contact Jeffrey M. Norton (firstname.lastname@example.org) via email or toll free at (877) 935-7400.
For over two decades, Harwood Feffer has been a nationally recognized firm that specializes in complex, multi-party litigation with an emphasis on securities, ERISA, consumer fraud, products liability and civil rights litigation. Harwood Feffer serves as lead counsel in numerous class actions on behalf of investors, employees, and consumers and has recovered hundreds of millions of dollars in recoveries for its clients.
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