Spiro Moss has handled many class actions involving claims against lenders and financial services companies.  

At present, attorney J. Mark Moore and the firm, along with a group of other class action firms, are litigating class actions in California state and federal courts involving claims against banks and other lenders.   A number of these cases involve claims that banks misled borrowers into obtaining "Option ARM" loans without sufficiently disclosing the loans' true nature, including the fact that the loans were designed to cause negative amortization (loss of home equity) and that adhering to the contractual payment schedule provided to borrowers at the time the loans were made would invariably result in negative amortization.   One of these cases recently resulted in a high nine-figure settlement, including cash and the value of loan modifications the defendant will provide to eligible class members.  

Update - August 2011: 

Firm Secures Published Appellate Victory in Proposed Class Action Alleging Lender's Illegal Use of Deceptive "Option ARM" Loan Documents  

In Boschma v. Home Loan Center, Inc., 198 Cal.App.4th 230 (2011), the plaintiffs alleged that the defendant lender's loan documents violated California law by failing to disclose that making the payments set forth in the borrowers' promissory notes and Truth in Lending Disclosure Statements (TILDS) would ensure negative amortization (i.e., loss of equity or increased principal).  

The trial court dismissed the class action complaint, essentially holding that the documents were sufficient because they made disclosures about the subject matter of negative amortization.   Division Three of the 4th District Court of Appeal reversed, finding that the plaintiffs stated viable claims for common law fraudulent omissions and unfair, unlawful and fraudulent business practices in violation of Cal. Bus. & Prof. Code section 17200 et seq.   In doing so, the Court of Appeal observed: 

And we see no countervailing value in defendant's practice of providing general, byzantine descriptions of Option ARMs, with no clear disclosures explaining that, with regard to plaintiffs' particular loans, negative amortization would certainly occur if payments were made according to the payment schedule. To the contrary, a compelling argument can be made that lenders should be discouraged from competing by offering misleading teaser rates and low scheduled initial payments (rather than competing with regard to low effective interest rates, low fees, and economically sustainable payment schedules).

Firm attorney J. Mark Moore co-authored the Boschma appellate briefs and argued the matter on appeal before the 4th District Court of Appeal.

The Boschma case is ongoing.  If you obtained an Option ARM loan from Home Loan Center, Inc., dba Lending Tree Loans, and would like to learn more about this case, please contact Mr. Moore.