Scam Could Be Cheating California Homeowners Out Of Thousands

LOS ANGELES (August 31, 2011) –The national law firm of Baron and Budd is investigating a possible mortgage scam known as the Equity Accelerator Program, a popular program offered by JP Morgan Chase, Citibank, Wells Fargo and numerous other banks and mortgage lenders. Promoted as a program that can help save substantial money on a home mortgage, banks are taking advantage of people enrolled in the program by failing to apply funds to the mortgage on the same day they are withdrawn from the customers’ accounts, meaning that consumers are essentially giving the bank a loan without their knowledge –and ultimately saving no money on their home mortgage.

"When a bank engages in unauthorized practices with your money, it’s fraud. Banks are completely misrepresenting their mortgage equity accelerator programs to consumers, claiming they can save money when they really are not," said Roland Tellis, Baron and Budd shareholder and head of the firm’s consumer fraud litigation section. "These banks even charge a fee to participate in this ‘money saving’ service, meaning that you are not only not giving the bank a loan without your knowledge or consent, but they are charging you extra to do it."

While consumers can save money on interest by making mortgage payments on principal balances sooner, the accelerator program promises consumers big savings by using electronic money transfers to make mortgage payments twice a month.  During the period between withdrawal and application of funds to the mortgage, homeowners are essentially making a loan to the bank without their knowledge or permission.

If you are a California mortgage holder and are enrolled in a mortgage equity accelerator program through Chase Bank or another mortgage lender, you may be eligible for a class action lawsuit. Call Baron and Budd at 1.866.656.2425 or email mortgagescam@barondbudd.com to learn more. There is no upfront cost for the firm’s investigation of potential mortgage fraud. At this time, Baron and Budd is only able to assist mortgage holders in the state of California.

Recognized as a top national plaintiffs’ law firm, Baron and Budd is dedicated to defending the rights of consumers. The firm currently serves on the Plaintiffs’ Steering Committee in the bank overdraft fee litigation and is actively pursing a number of online companies that have scammed consumers with fraudulent credit card charges and misleading rewards programs.

About Baron & Budd, P.C.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin, Los Angeles and Miami, is a nationally recognized law firm with a 30-year history of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, dangerous medications and medical devices, Chinese drywall, insurance claims, commercial litigation, consumer fraud, securities fraud and asbestos-related illnesses such as mesothelioma.

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