SunTrust Hit With Action Over Loan Fees, Foreclosures

Law360, New York (August 31, 2011, 8:16 PM EDT) -- SunTrust Mortgage Inc. and its parent were hit Wednesday with a putative class action in Illinois federal court alleging the lender improperly assessed late fees and foreclosed on homes even though the plaintiffs say they complied with their contracts.

Purported lead plaintiff Sigrid Garavito filed the suit against SunTrust and SunTrust Banks Inc. targeting the lender's loan modification practices developed in response to the economic crisis, practices that she says punish mortgage holders when they follow rules specifying that they can make reduced payments following a...
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