Home > Lawsuits > LendingTree and Home Loan Center, Inc. False Advertising
LendingTree and Home Loan Center, Inc.
October 16 2006
A nationwide class action lawsuit has been filed against the online lending exchange and its subsidiary for allegedly engaging in unfair business practices and false advertising. The lawsuit was filed in Orange County Superior Court on behalf of customers alleging LendingTree claims to connect borrowers to a network of lenders that allegedly compete for the borrowers' business. The class claims no such competition exists and instead, LendingTree uses its LendingTree.com website and false advertising to generate leads for its wholly owned, direct lending division, Home Loan Center.
"According to the lawsuit, borrowers are deceived into believing that they need not shop for a better loan rate because LendingTree has already done the shopping for them through use of its lender network. In truth, the lawsuit alleges, LendingTree uses the 'when banks compete, you win' slogan as a gimmick to attract unwary borrowers and sell them loans through the company's direct lending division at inflated prices and without any such competition."
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Approximately 2 weeks ago I saw their ad for 4.35% fixed 30 year mortgage. I clicked their icon to apply and filled out all of the information asked for. Since then I have received no less than 10 calls a day from everyone from mortagage brokers to tax help and credit repair people. It appears that this company sold and resold my name to many lead brokers and I never heard from Lendingtree concerning the low interest rate which I found to be a fraud.
Posted by California
LendingTree and HCL have denied me a refund of a $600.00 deposit for locking-in the interest rate and specified closing costs on a first time home purchase. They changed the terms on the loan from 0% down to 5% down a week before the closing date.
Posted by Oregon
After I discovered their claims of the subordination fees were not true they changed their story and claimed the fees were required for extension of the rate lock. When I told them I was not happy with their terms and wanted to cancel the loan they agreed, but would not refund the 600 dollar fee.
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