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Federal Court Orders ING Direct Mortgage Litigation To Proceed As A Class Action.

Suit Charges ING Breached Promise To Allow Homeowners To Refinance Future Mortgages For A Flat Fee Using its "Rate Renew" Feature

NEW YORK -- Jonathan D. Selbin of the national plaintiffs' law firm Lieff Cabraser Heimann & Bernstein, LLP, together with Matthew R. Wilson of the law firm Meyer Wilson Co., LPA, announced that the federal court overseeing the litigation against ING Direct for allegedly refusing to honor its "Rate Renew" mortgage refinancing guarantee issued an order yesterday allowing the case to proceed as a class action.

"ING customers in ten states are now a significant step closer to holding ING accountable for its classic bait-and-switch marketing tactic," Selbin stated. "For four years, ING aggressively promoted, and convinced consumers nationwide to sign up for, its short-term Easy Orange and Orange mortgage loans on the promise that they would only have to pay ING $500 or $750 to refinance their ARM and balloon loans when the period of fixed interest ended under the Rate Renew program."

The lawsuit alleges that ING systematically broke its promise by charging its customers higher costs when they sought to refinance, or denying them the right to refinance at all. Wilson added that "ING's alleged scheme is all the more egregious because ING has marketed itself to borrowers as a bank that does not employ hidden fees, while at the same time manipulating its Rate Renew program to increase its bottom line."

Judge Leonard P. Stark of the U.S. District Court for the District of Delaware certified the following class, "All individuals who purchased or retained an ING Easy Orange or Orange Loan at any time between October 1, 2005 and April 23, 2009 who were residents of the following states at the time of purchase: Colorado, Connecticut, Delaware, Florida, Illinois, Massachusetts, Minnesota, New Jersey, New York, and Washington." A copy of the Court's order and plaintiffs' complaint can be found at http://www.lieffcabraser.com/inglawsuit.

Background on the ING Direct Class Action Rate Renew Lawsuit

The complaint charges that ING Direct breached its promise to allow its customers to refinance their home mortgages for a fixed flat fee of $500 or $750. From October 2005 through May 2009, ING promoted this "Rate Renew" program as a benefit of choosing ING mortgages over competitors'.

Later, beginning in May 2009, ING began charging a higher fee of one-monthly mortgage payment for refinancing using "Rate Renew," despite its earlier and lower advertised price. As a result, the lawsuit alleges, many consumers paid more to refinance their loans using "Rate Renew" than they were originally promised and even though they met the terms and conditions of ING's original "Rate Renew" offer.

Notice to California ING Orange Loan Customers

Almost one-third of the ING customers nationwide that sought to take advantage of its Rate Renew offer from 2005 to 2009 were residents of California. California is not one of the states currently included in the class certified by the Court.

Californians and all others who received advertising that guaranteed a $500 or $750 flat-fee "Rate Renewal" for refinancing their mortgage with ING are welcome to contact attorney Daniel Hutchinson in Lieff Cabraser's San Francisco office toll free at 1-800-541-7358 or visit the ING case page to learn more about the litigation and to submit your complaint. There is no charge or obligation for Lieff Cabraser's review of your complaint.
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Publication:Business Wire
Geographic Code:1U2NY
Date:Aug 28, 2012
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