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Tuesday, April 16, 2024

Couple sues CitiMortgage for alleged deception

Mortgage

JONESBORO, Ark. (Legal Newsline) - A married couple from Craighead County, Ark., is suing CitiMortage, a large mortgage and loan corporation, over deceptive trade practices.

Paul and Ann Ford, for themselves and all other similarly situated Arkansas residents, filed a class action complaint June 12, 2014, against CitiMortgage, claiming the corporation sent a reinstatement letter to the Fords for services never performed. The defendant recently removed the case to federal court.

After the Fords began falling behind on their mortgage payments in 2011, CitiMortgage notified them that their loan had been delinquent. The letter contained a notation of foreclosure from Wilson & Associates, an Arkansas law firm. The Fords requested a reinstatement letter from Wilson & Associates, paid the reinstatement fees in excess of $19,000, but CitiMortgage continued to send letters to the Fords stating they were thousands of dollars in arrears, according to the complaint.

The complaint alleges that a title search performed by Stewart Title of Arkansas on Oct. 3, 2012, showed no notice of foreclosure had been filed for the Fords' home.

The complaint alleges that CitiMortgage retained fees for unperformed services, and the Fords and others in the class seek actual and punitive damages, plus court costs.

The Fords are represented by Joel G. Hargis; Scott E. Poynter, William T. Crowder and Corey D. McGaha of Emerson Poynter LLP in Little Rock, Ark.; John G. Emerson of Emerson Poynter LLP in Houston; Kathy A. Cruz of The Cruz Law Firm in Hot Springs, Ark.; Annabelle L. Patterson; and Todd Turner and Dan Turner of Arnold, Batson, Turner & Turner in Arkadelphia, Ark.

U.S. District Court for the Eastern District of Arkansas: 3:15-cv-00206-DPM

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