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.
A clear and warm weekend as temperatures begin to warm. Humidity levels in the desert will gradually lower through the weekend as a weak ridge briefly builds Saturday.
San Diegans and tourists alike headed to the coast to take in all that the first day of fall has to offer.
A Navy SEAL is being held in a military brig while authorities investigate the stabbing death of an Islamic State combatant while he was subdued in Iraq last year.
A California kindergartener can keep bringing a cannabis-based drug used for emergency treatment of a rare form of epilepsy to her public school, a judge ruled Friday.
San Diego Mayor Kevin Faulconer signed two resolutions with Tijuana Mayor Juan Manuel Gastelum supporting international trade and border infrastructure programs.
City Attorney Mara Elliott announced that her office, in coordination with other state and city agencies, reached a $1.6 million settlement with Whole Foods Market California Inc. and two related entities resolving allegations of unlawful handling and disposal of hazardous waste and materials.
Police arrested a 32-year-old Escondido man on suspicion of murder in connection with the shooting death of an unidentified male at a bar on West Grand Avenue.
A woman was killed when she stepped out of her boyfriend's car onto a Chula Vista street and was struck by a passing vehicle, authorities said Saturday.
Residents in La Mesa’s Eastridge area are trying to solve a mystery surrounding a dinosaur. The Tyrannosaurus Rex statue appeared on an empty plot of land sometimes over the past few days with no explanation.