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New Jersey woman alleges Household Finance failed to fulfill loan promise

By Robbie Hargett | Feb 15, 2016

NEWARK, New Jersey (Legal Newsline) - A New Jersey woman is suing subsidiaries of a banking and financial services company, alleging they never followed through on a promise of a permanent loan modification.

Lurline McLean, individually and for all others similarly situated, filed a class action lawsuit Dec. 30 in U.S. District Court for the District of New Jersey against Household Finance Corporation International, Household Finance Corporation II, and Household Finance Corporation III, alleging breach of contract, breach of good faith and fair dealing, violation of the New Jersey Consumer Fraud Act, common law fraud, promissory estoppel, and equitable estoppel.

The complaint states the defendants offered two trial period loan modification plans, representing they would provide McLean and others in the class with permanent loan modifications if they made all required payments under the trial period plans in 2010 and 2011.  

McLean and others accepted the offer and performed their obligations under the first and second trial plans, the suit says, but the defendants failed to honor the promise of a permanent loan modification. The lawsuit states the defendants instead directed borrowers to submit an application for its hardship program, which was not a permanent modification, but a temporary reduction in interest rate lasting six months.

The defendants retained the trial plan payments under the false pretense of a promised loan modification, the suit says.

McLean and others in the class seek injunctive and declaratory relief, compensatory and treble damages, punitive damages, interests, attorney fees, and costs of the suit. They are represented by attorney Roosevelt N. Nesmith of the Law Office of Roosevelt N. Nesmith in Montclair, New Jersey, and by attorneys Catherine E. Anderson and Jason Solotaroff of Giskan, Solotaroff, Anderson & Stewart in New York.

U.S. District Court for the District of New Jersey Case number 2:15-CV-08974-SDW-LDW

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