A statewide class action has been filed against the National City Mortgage Company on behalf of all South Carolina residents who were issued a mortgage by National City Mortgage that understated the annual percentage rate of interest due to the fact that National City included fees for points and brokerage fees in the amount financed. The action was originally filed in state court, and has been removed to federal court by National City. The mortgagees claim that National City violated the South Carolina Unfair Trade Practices Act and are seeking statutory damages, treble damages and declaratory relief.

This action arises from what the mortgagees allege is a systematic, willful and intentional practice designed to defraud consumers. As part of this scheme, the mortgagees allege, National City included brokerage fees and points in the amount financed by consumers. The mortgagees allege that this increased the amount financed and altered the interest rate--without their knowledge. The mortgagees claim that these fees were actually pre-paid expenses, but were not treated as such. This, the mortgagees allege, is deceptive and misleading and violates the South Carolina Unfair Trade Practices Act.