LOGAN – A Rocky Branch couple alleges they were victims of predatory lending.
Danny Scaggs and Jackie Scaggs filed a complaint in Logan Circuit Court against Beneficial West Virginia Inc., HSBC North America Holdings Inc., HSBC Mortgage Services Inc., Rushmore Loan Management Services LLC and U.S. Bank Trust National Association as trustee for Loan Acquisition Trust 2017-RPL1.
According to the complaint, the plaintiffs sought a loan from Beneficial West Virginia in 2007 and the defendant arranged for an "inflated valuation" of their home. The suit states the defendant's appraiser represented that the plaintiffs' mobile home was worth $115,000 when the real value was less than $50,000. The plaintiffs allege they relied on the misrepresentations when entering the transaction.
The plaintiffs allege Beneficial then induced them into a new refinancing plan for $108,671.59 and took a security interest in the property. When the plaintiffs closed, they allege they were presented with a deed of trust that listed their home as the security for the loan, which would allow the borrower to transfer rights to the property to a third party for security of payment. The actual value of the plaintiff's home is now less than $10,000, the suit states.
The defendants are accused of fraud as a defense to contract, contract defense as unconscionable contract and contract defense of illegality of loan.
The plaintiff is seeking all reasonable sums due, attorney fees and court costs. The plaintiffs are represented by Clint Carte and Daniel F. Hedges of Mountain State Justice Inc. in Charleston.
The case has been assigned to Judge Eric H. O’Briant.
Logan Circuit Court case number 19-C-22