>First American Title Insurance
Date Filed: May 14, 2008
Court: U.S. District Court
Location: California
Ticker Symbol: FAF
Hagens Berman Sobol Shapiro filed a lawsuit on behalf of consumers against one of the nation's largest title and escrow companies, First American Title Insurance, claiming the company engaged in a series of schemes and deceptions designed to bilk customers out of millions of dollars.
The lawsuit identifies four schemes created to bilk customers.
The complaint alleges First American engaged in a captive reconveyance scheme - charging customers fees for reconveyance when the reconveyance is actually done by the prior lender, a charge built into the payoff amount.
The complaint also claims First American engaged in a retained interest scheme, pooling customer's loans and taking the profit from gained interest, the suit states. The company failed to disclose this to customers, which is a violation of fiduciary duties, according to the claim.
First American also engaged in an affiliate reconveyance scheme, steering customers to subsidiary businesses for reconveyance tracking then charging the customer three times the rate the affiliated company charges independents, the suit claims.
The complaint also alleges that First American engaged in a wire fee scheme charging customers for the transfer of funds back and forth from the bank, when in reality the banks provided these for no fee or minimal cost to First American.
HBSS believes First American engaged in these practices over the past five years and has illegally collected millions of dollars from consumers.
HBSS has also filed suit against three other title and escrow companies alleging similar practices. Other defendants include Fidelity National Title Company, Chicago Title Company and Old Republic Title and Escrow.
If you used First American Title Insurance, please contact HBSS by clicking here or e-mailing info@hbsslaw.com.
Court: U.S. District Court
Location: California
Ticker Symbol: FAF
Hagens Berman Sobol Shapiro filed a lawsuit on behalf of consumers against one of the nation's largest title and escrow companies, First American Title Insurance, claiming the company engaged in a series of schemes and deceptions designed to bilk customers out of millions of dollars.
The lawsuit identifies four schemes created to bilk customers.
The complaint alleges First American engaged in a captive reconveyance scheme - charging customers fees for reconveyance when the reconveyance is actually done by the prior lender, a charge built into the payoff amount.
The complaint also claims First American engaged in a retained interest scheme, pooling customer's loans and taking the profit from gained interest, the suit states. The company failed to disclose this to customers, which is a violation of fiduciary duties, according to the claim.
First American also engaged in an affiliate reconveyance scheme, steering customers to subsidiary businesses for reconveyance tracking then charging the customer three times the rate the affiliated company charges independents, the suit claims.
The complaint also alleges that First American engaged in a wire fee scheme charging customers for the transfer of funds back and forth from the bank, when in reality the banks provided these for no fee or minimal cost to First American.
HBSS believes First American engaged in these practices over the past five years and has illegally collected millions of dollars from consumers.
HBSS has also filed suit against three other title and escrow companies alleging similar practices. Other defendants include Fidelity National Title Company, Chicago Title Company and Old Republic Title and Escrow.
If you used First American Title Insurance, please contact HBSS by clicking here or e-mailing info@hbsslaw.com.
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