CHARLESTON -- A Boone County mother and son are suing CitiFinancial Inc. after they claim it violated the Consumer Credit and Protection Act.

Ethel Sanders was diagnosed with dementia and her son, William Sanders, moved in with her to care for her, according to a complaint filed April 14 in Kanawha Circuit Court.

In 2000, Ethel Sanders obtained a loan from the defendant in the amount of $15,156.54, which was secured by a deed of trust against her principal residence, according to the suit.

In 2004, the plaintiffs claim representatives of CitiFinancial actively solicited Ethel Sanders for further loans, proclaiming she could improve her financial position by refinancing her existing obligations, according to the suit, so Ethel Sanders obtained a second loan in the amount of $52,713.80.

The plaintiffs claims Ethel Sanders' monthly income is approximately $1,700, which comes from $700 from retirement income and $1,000 from benefits from the death of her husband.

The defendant continued the aggressive solicitation of loans, resulting in seven additional loans over the course of two years, according to the suit, and a loan that was made in March 2007 was documented as a mortgage that resulted in the refinancing of the second loan at a higher interest rate.

William Sanders claims that as a result of the defendant's aggressive actions, his mother became indebted to CitiFinancial in an amount exceeding $104,000.

William Sanders claims he attempted to work out the indebtedness with the defendant upon discovering his mother's indebtedness, but that CitiFinancial continues to threaten to put them both "onto the street."

The plaintiffs are seeking compensatory damages. They are being represented by Dana F. Eddy.

The case has been assigned to Circuit Judge James C. Stucky.

Kanawha Circuit Court case number: 10-C-706

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