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West Virginia Record

WEST VIRGINIA RECORD

Sunday, November 24, 2024

Couple accuses CitiFinancial of predatory lending

Hourglass mortgage

PINEVILLE – A Wyoming County couple is suing a bank for allegedly lending them money for their manufactured home based on an inflated appraisal.

Dennis E. and Tammy K. Bragg filed a lawsuit April 7 in Wyoming Circuit Court against CitiFinancial Inc. and CitiFinancial Servicing LLC, alleging unconscionable inducement, fraud, and illegal loan servicing.

According to the complaint, the Braggs refinanced a double-wide trailer they originally bought for $34,900 over 30 years ago with CitiFinancial for $55,140 in 1999. The suit says the new loan carried an interest rate of 11.39 percent for 20 years, with the possibility of six-month adjustments after the initial two years.

However, the Braggs say CitiFinancial based the loan on an allegedly inflated appraisal of $59,000, when the value was only $27,175. Today, the suit says, the home has depreciated, with floor, ceiling and wall damage, as well as issues with the electrical wiring, leaving the appraised value at $32,500.

The Braggs seek a jury trial, actual and punitive damages, as well as litigation costs. They are represented by attorney Sarah K. Brown of Mountain State Justice Inc. in Charleston.

Wyoming Circuit Court Case number 16-C-46

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