Union Mortgage Corporation
Two Counts of Claims for Relief
Count I - Breach of Contract
By collecting and attempting to collect a fee for delivery of a
monthly mortgage statement (during the relevant time period) constitutes
a breach of contract between the Defendants and
members of the class action. Charging such a fee was not permitted
under the mortgage and is considered unfair conduct. It also violates
the Defendants' obligation of good faith and fair dealing in the
Count II - TILA (Truth in Lending Act)
The transactions in question were consumer credit transactions within
the meaning of the Truth in Lending Act (TILA) and Regulation
Z. These financial institutions are creditors within the
meaning of the TILA (each has originated 25+ consumer credit contracts
per year) and are obligated to disclose any fees in connection with
the availability or use of credit. They are also obligated to indicate
the time when such fees are payable.
Because the Defendants and Assignors failed to
disclose the fee and didn't refer to it anywhere in the mortgage,
they are responsible to each person (in the class action) that was
charged such fees by the Defendants.
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