Borrowers Accuse Lloyds Of Ignoring Real Estate Loan Caps

Law360, New York (June 8, 2012, 4:05 PM EDT) -- Lloyds TSB Bank PLC was hit with a proposed class action Tuesday claiming it disregarded real estate loan cap protections for borrowers associated with risky convertible currency loans, in which principal balances are converted to foreign currency and adjusted based on conversion rates.

In their suit filed in California federal court, named plaintiffs David and Patricia Osmena claim Lloyds repeatedly ignored its promise to borrowers that their principal balances would be capped at 120 percent of the original amount before conversion to Japanese yen, protecting them...
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