Dan Gilbert's Quicken Loans mortgage company is being accused of shady dealings by the state of Washington.
Tom Henderson of Crain's Detroit Business reports that the state of Washington is alleging that Quicken Loans Inc. owes a fine of $500,000 for using deceptive tactics to target military veterans in violation of the state’s Consumer Protection.
It wants the company to stop the practices. Quicken denies the charges.
The allegations come at a time the Justice Department is suing the mortgage giant for alleged wrong doing.
Crain's reports:
In a seven-page filing dated June 15, Washington’s Department of Financial Institutions alleges that between Jan. 1 and Aug. 8, 2014, Quicken distributed at least 65 direct-mail solicitations offering service members, veterans and family members mortgage loans guaranteed by the Veteran’s Administration.
The state charged that, among other things, those solicitations used a watermark emblem designed to resemble the seal of the U.S. Department of Veteran Affairs, did not clearly disclose the annual percentage rate, did not properly disclose when adjustable rate mortgages rates would reset to a higher rate, engaged in bait-and-switch advertising and created a false sense of urgency by directing recipients to immediately contact Quicken loan officers.
Quicken Loans responded, according to Crain's:
“While we strongly disagree with several aspects of the state of Washington’s assertions and will address each of them in response to their statement, Quicken Loans has proactively taken steps to ensure all mailings reflect our brand and quality standards. Meeting the needs of our active and retired military has been and will continue to be a top priority at Quicken Loans.”
