Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—CalAppCt: Chase Bank May Be Liable For Misrepresenting HAMP Trial Period Plan, (Mar 19, 2013)
Law Firms Mentioned:AlvaradoSmith
Organizations Mentioned:JPMorgan Chase Bank, NA
By Jody Coultas, J.D.
A mortgage holder stated California Unfair Competition Law (UCL) claims against JPMorgan Chase Bank, N.A. for allegedly misrepresenting Home Affordable Mortgage Program (HAMP) modification re-evaluation acts, deadlines, and other terms, according to a California appellate court. (West v. JPMorgan Chase Bank, N.A., March 18, 2013, Fybel, J.)
After defaulting, the mortgage holder agreed to a trial period plan with Chase. The plan was a form of temporary loan payment reduction under HAMP. Despite complying with every term of the plan, Chase denied the mortgage holder a permanent loan modification and sold the home at a trustee sale.
Unfair competition under the UCL includes any unlawful act or practices, including violations of other laws that are treated as independently actionable as unfair competition. Courts have held that an act or practice is unfair if the consumer injury is substantial, not outweighed by any countervailing benefits to consumers or competition, and was not reasonably avoidable. Unfair business practices are practices that offend an established public policy or are immoral, unethical, oppressive, unscrupulous or substantially injurious to consumers.
Chase allegedly engaged in a practice of offering trial period plans that did not comply with HAMP guidelines and the United States Department of the Treasury directives. The mortgage holder also alleged that Chase misrepresented a borrower’s right and ability to challenge the bank’s calculation of the net present value, misrepresented the foreclosure sales, and wrongfully had trustee’s sales conducted when the borrower was in compliance with a trial period plan.
The court also found that the mortgage holder stated causes of action for fraud, negligent misrepresentation, breach of written contract, and promissory estoppel.
The case is No. G046516.
Attorneys: Genevieve West, pro se. John M. Sorich (AlvaradoSmith) for JPMorgan Chase Bank, N.A.
Company: JPMorgan Chase Bank, N.A.
Cases: StateUnfairTradePractices CaliforniaNews