The firm filed a class action lawsuit in December, 2006 against Lenox Financial in California Superior Court, alleging that Lenox Financial Mortgage Company has advertised its residential home mortgage loans as having “no closing costs.” Contrary to those representations, it is alleged that Lenox did charge closing costs to its customers. Lenox is also alleged to have rolled those closing costs into the new loans for its customers, leading to higher interest rates and charges than they would otherwise have been eligible to receive.

It is further alleged that Lenox had self-dealing transactions with affiliated companies for escrow, recording and other settlement services that led to lower costs for Lenox, but that those deals were not disclosed to consumers. An arrangement with LSI Title Company, also a defendant in the suit, is said to involve illegally low title insurance rates which were used to ensure referrals and generate kickbacks to Lenox.

The plaintiff class that the complaint asks to be approved by the court includes all persons who over the four (4) years prior to the filing of the complaint, while residing in California, entered into a home mortgage loan with Lenox in response to its advertising “no closing cost” loans.

If you entered into a residential home mortgage loan with Lenox Financial in California in the last 4 years, after hearing or seeing advertisements of “no closing cost” loans, we would like to hear from you. Please complete the registration form linked off of the icon above and someone from our office will contact you soon. A copy of the Complaint is linked here.