The financial crisis of 2008, widely considered the worst since the Great Depression, stemmed from the securitization of risky mortgage loans sold to investors at wildly inflated prices. In essence, mortgage companies eager for even more business began encouraging borrowers to take out mortgages on homes they could not afford. These subprime mortgages - called "liar loans" by some because they were often based on falsified paperwork and inflated incomes - were then bought by investment banks that bundled them up and sold to big investors at prices that did not reflect the creditworthiness of the borrowers. When the housing bubble burst and borrowers began defaulting on their mortgage payments, the value of those investments declined, throwing the entire financial system into chaos and millions out of their homes.
Posts tagged "deceptive trade practices"
A jury has ordered Equifax to pay an unprecedented eighteen million dollars to an Oregon woman who spent over two years trying to get her credit report corrected.
Anheuser-Busch has systematically cheated consumers and violated Texas law by watering down Budweiser and its other beers to reduce alcohol content below advertised levels, a federal lawsuit filed last Thursday in Dallas alleges. The lawsuit states that the alcohol content is mislabeled on the brands Budweiser, Michelob, Michelob Ultra, Hurricane High Gravity Lager, King Cobra, Busch Ice, Natural Ice, Bud Ice, Bud Light Platinum, and Bud Light Lime.
A recent lawsuit accuses FedEx of systematically overcharging business and governmental customers on a wide scale. The class action lawsuit claims that FedEx charged the higher residential rate for packages that were being sent to many businesses and governmental offices at the higher residential rate. The suit alleges that FedEx overcharged these customers by as much as $3 per package, with millions of packages having been overcharged. Many of these charges were made for delivery to addresses that were obviously not residential addresses including banks, courthouses, and governmental offices. It is alleged that FedEx even charged the residential rates to packages sent to its own corporate offices.