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Option One Accused of Charging Inappropriate Penalties to Mortgage Holders

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Case ID: 3900 | Credit / Debt | 11/02/2004

A class action lawsuit has been filed against Option One Mortgage Corp., a subsidiary of H&R Block, by consumers who received stated income mortgage loans. The complaint alleges that these creditors were charged pre-payment penalties that violated federal lending laws. The plaintiffs seek a refund of the penalties and other damages.

The complaint alleges that all creditors who received “stated income” loans, or loans that did not require income verification, were charged prepayment penalties that violated federal lending requirements.

Plaintiffs seek to enjoin these practices at Option One and seek refunds of the penalties as well as interest, costs, and other damages.


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