CHARLESTON -- A Charleston woman is suing CitiFinancial and CitiMortgage for engaging in mortgage loan servicing abuse.
Myrtle Gill purchased her current home in 1960 with her now deceased husband and in 2001, she owned the home free and clear of any debt, according to a complaint filed June 8 in Kanawha Circuit Court.
Gill claims the defendants encouraged to her consolidate all of her debts with a loan and take out a loan for significantly more money than she had originally requested. She claims the defendants arranged for an inflated appraisal of her residence indicating the home value exceeded $47,000.
On Sept. 20, 2001, the defendants closed a loan with Gill that had a principal balance of $46,913.34 and an interest rate of 8.49 percent, according to the suit.
In June 2010, Gill claims she learned that the market value of her home at the time of the loan was no more than $24,800. She claims the defendants placed her in a loan nearly twice the size of the value of her home and repeatedly assessed illegal fees to the account and misrepresented amounts due.
Gill is seeking actual damages, punitive damages and civil penalties of $4,400 for each violation. She is being represented by Jennifer S. Wagner and Daniel F. Hedges.
The case has been assigned to Circuit Judge Charles King.
Kanawha Circuit Court case number: 10-C-1034
Charleston woman sues CitiFinancial, CitiMortgage for predatory lending
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