Is Quicken Loans a predatory lender

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Various Services That Can Be Obtained

The company gives customers a wide range of choices when it comes to home financings, such as fixed-rate mortgages, reverse mortgages, FHA loans, and VA programs. The “YOURgage” plan that is being offered gives you the opportunity to personalize the terms of your loan by choosing the length of the loan, the percentage of the principal that will be forgiven, and a number of other specifics that are most suitable for you. As a direct response to the subprime mortgage crisis as well as the difficulties that banks have been having in obtaining funding, Quicken Loans ceased offering second mortgages, home equity lines of credit, and loans with deferred interest in the year 2007.

Distinguished Accomplishments and Honors

Since 2003, Quicken Loans has been consistently ranked among the top 30 of Fortune Magazine’s annual list of the “100 Best Companies to Work For.” In 2008, the business moved up the rankings to take the number two spot on the list, falling just behind Google. Quicken Loans was recognized by Computerworld Magazine as one of the “100 Best Companies to Work For in Technology,” and the publication placed the company in the top spot in 2005, 2006, and 2007.

Lawsuit

It was determined in February of 2010 that Quicken Loans was required to pay $2.7 million in punitive damages in addition to paying $600,000 in legal fees in connection with a case that took place in West Virginia and involved allegations that the company had fraudulently taken advantage of a woman by providing her with an inflated home valuation.

At the beginning of 2011, a group of former workers filed a lawsuit against Quicken Loans, alleging that the company coerced them into working overtime without providing them with adequate compensation and required them to participate in predatory lending practices. In this particular dispute, Quicken Loans emerged victorious, as no improper business practices were discovered in the investigation.

On Tuesday, the beginning of the trial will take place in Detroit.

Quicken Loans founder Dan Gilbert. Credit: This image was provided by Mark Duncan/Associated Press In the meantime, a number of former workers have filed a complaint in federal court against Quicken, alleging that the company mistreated both its employees and its customers. In court documents, former salespeople allege that executives at Quicken managed by bullying and intimidating them, pressuring them to falsify borrowers’ incomes on loan applications and to push overpriced deals on homeowners who were either desperate or unwary. These former salespeople allege that the executives were responsible for the bullying and intimidation.

Michael Pikora, a former loan salesman, said in a sworn statement that managers encouraged salespeople to boost their commissions by “locking the customer into a higher interest rate, even if they qualified for a lower rate, and rolling hidden fees into the loan.” This information was provided in a lawsuit involving hundreds of former employees of Quicken who claim the company forced them to work unpaid overtime. Pikora was one of the salespeople who testified.

The trial for this case, which is one of several lawsuits regarding overtime pay against the lender, is scheduled to begin the following Tuesday in the United States District Court for the Eastern District of Michigan in Detroit.

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