HELOC Class Actions on the Rise
1/22/2010
Banks nationwide are facing an increasing number of class action lawsuits related to the suspension or reduction of home equity lines of credit (HELOCs). It is important for banking institutions (and the attorneys who represent them) to understand the nature of these claims and the strategies employed by the plaintiffs’ attorneys.
WHAT IS HAPPENING
Plaintiffs’ firms across the country are filing putative class actions against banks related to alleged damages arising out of alleged unilateral modification of HELOCs. The Chicago-based firm of Edelson McGuire LLP (formerly KamberEdelson LLP) is leading the charge, filing several cases in California and Illinois. The plaintiffs’ bar has also created a Web site (www.heloc-complaints.com) to collect new claims. The site links to www.classactionconnect.com, a site used by Edelson McGuire to communicate with potential plaintiffs. Read more ...
