A federal lawsuit filed today in San Diego alleges Washington Mutual, now operating as a division of JP Morgan Chase Bank, has been systematically reducing and freezing customers' home equity credit lines.
The proposed class-action suit -- filed on behalf of Escondido businesswoman Michell Kimball -- alleges the bank used flawed automated valuation models to intentionally understate home values so it could create a pretext for freezing its customers' line-of-credit accounts.
The lawsuit alleges that the banks are failing to live up to their promises to use $700 billion in taxpayer funds to lend money to cash-strapped home and business owners and are squeezing consumers by freezing or reducing their home equity lines of credit.
Kimball said she first learned that Chase had frozen her WAMU credit line when a check she had drawn on the account was dishonored.
The plaintiff said the action by the bank threatened her home and the viability of her small business.
After Kimball's lawyers intervened, Chase restored her credit line but did not reimburse her for her losses, according to her court papers.
Before Saturday, Marine veteran Joshua Ray, his wife and six children had just one vehicle to use for all of their family business, and Ray had to take the train from Oceanside to San Diego every day to get to work.
A man arrested on suspicion of committing a murder in Imperial Beach earlier this week remained jailed Saturday.
Spencer Abbott had two goals and two assists after missing two games and Eric Fehr scored twice in his debut with the San Diego Gulls in an 8-3 victory over the Tucson Roadrunners Friday night.
A sea of pink will travel through San Diego starting Friday for the Susan G. Komen San Diego 3-Day. The 60 mile journey kicks off early Friday morning and ends Sunday evening at the final destination – the celebratory Closing Ceremony.
On Friday, a fourth woman came forward with disturbing allegations of sexual assault by a San Diego County Sheriff’s Deputy.
Malcolm Young, the rhythm guitarist and guiding force behind the bawdy hard rock band AC/DC who helped create such head-banging anthems as "Highway to Hell," ''Hell's Bells" and "Back in Black," has died.
One person was killed Friday in a crash involving a motorcycle on northbound Interstate 5 in Carlsbad.
Covet Canyon, a paramilitary training camp in the East County, is in financial trouble after the owner defaulted on property payments. Owner Marc Halcon has 90 days to make good on the debt or the 160 acre property could fall into foreclosure and auction.
Angry Poway Unified School District parents on Friday packed the sidewalk calling for a local teacher to be fired after sending inappropriate text messages to a teenage student.
The unemployment rate in San Diego County dropped to 3.7 percent last month from 4.1 percent in September, according to state figures released Friday.