WINFIELD – A man is sing CitiFinancial after he claims it violated West Virginia code and attempted to collect a fraudulent debt.
Allen T. Stone and his late wife purchased a home in 1974 for $12,500 and the home has a cracked foundation and attendant structural issues; is in poor condition; the siding on the home is deteriorating and needs replacement; ceiling tile in the home is damaged and falling; and a small outbuilding on the property is falling down, according to a complaint filed May 9 in Putnam Circuit Court.
Stone claims in Fall 2009, he was obligated on a small personal loan with CitiFinancial in the amount of $1,513.40 and he was interested in paying off a vehicle loan for his daughter and contacted the defendant.
The defendant’s loan officer represented that he would have to consolidate his personal loan and other debts into a home-secured loan in order to obtain financing and, at the time, the plaintiff did not have any indebtedness secured by his home, according to the suit.
Stone claims on Nov. 16, 2009, the defendant flipped him into a loan for $29,548.62 with an interest rate of 11.5 percent for a term of 30 years and the defendant included an up-front origination fee in the loan.
The plaintiff has paid approximately $21,310 into the loan, but the principal balance has only decreased by approximately $1,490.74 and, despite the burden of the monthly payment, the plaintiff has worked hard to make timely payments on the loan.
Stone claims the defendant has engaged in a pattern of fraudulent servicing by threatening consumers with foreclosure when they are, in fact, current, and this pattern of misconduct impacts a large number of West Virginia consumers.
The plaintiff has suffered worry and stress, annoyance and inconvenience and fear of loss of his home, according to the suit.
Stone is seeking actual damages, civil penalties and punitive damages. He is being represented by Bren J. Pomponio of Mountain State Justice.
Putnam Circuit Court case number: 16-C-110