As more Class Action Lawsuits have been filed in the Nation and State of New York then one such a lawsuit was filed against Nationstar by a former customer. This lawsuit was filed on behalf of an individual who was a victim of Dish Network’s high call center volume. Nationstar has been sued by this person and lost in their first court case. The second court case ruled in favor of the customer and awarded him damages. It was determined that Nationstar had failed to train their employees to properly handle calls that came into their customer service centers. Their training standards fell far short of the requirements of any national agency and their system fell apart as a result.
This second lawsuit is being handled by the Federal Trade Commission who is suing Nationstar because the customer did not want to disclose material information about the phone calls that he made to his attorney general’s office. The Attorney General is responsible for protecting the consumers of the nation and their rights. The Attorney General has decided to file this complaint because he believes that Nationstar engaged in deceptive and improper business practices.
This second lawsuit revolves around the same attorney general and it revolves around the same loan modification and disclosure code section. The difference between these two lawsuits could be that the second lawsuit was brought before the Federal Telecom Regulatory Authority or FCC. The second lawsuit was brought before the courts and a judge has ordered the company to reveal material information about their high flood insurance premiums.
Nationstar received a referral from the Texas Department of Insurance. The company’s first amended complaint states that they did not know that the state law required them to notify customers that the premiums were subject to change and that they violated the civil code section when they instructed the customer to change the policy before the policy expired. This second lawsuit claims that the company failed to provide the state with the proper notice of the prepaid notice requirement.
Nationstar received a complaint from the Texas Department of Insurance that they had violated the prior actions. The department’s complaint alleged that the company failed to provide the proper warnings required by law and that they continued to push for high premiums despite knowing that the insured could not maintain the premiums after the policy had expired. Nationstar responded by filing a counter-suit in district court. This second lawsuit is also seeking monetary damages on behalf of the plaintiff.
Both lawsuits are currently pending and have been moving through the court system for some time. A hearing date has been set for a status conference on November 7th. If the parties can agree on a pre-trial date, then it is possible that a settlement between the parties could occur prior to the start of trial. If no settlement can be reached, then the lawsuits will proceed with a status conference likely to occur on or before the end of calendar year 2006.
