Billionaire EBS bidder Ross hit with US lawsuit
Published 29/10/2010 | 05:00
US billionaire Wilbur Ross -- who is among the bidders for EBS -- is facing a potentially embarrassing lawsuit in the US which alleges that one of his companies used tactics that led to "unfair and improper" repossessions of people's homes.
Mr Ross's company American Home Mortgage Servicing is facing a number of lawsuits in two US states relating to repossessions that have taken place since 2006.
American Home's "illegal, unfair and deceptive business practices victimise borrowers" across the US, according to the complaint.
The lawsuit, filed in Dallas, was filed on behalf of several homeowners and state attorney generals.
American Home "routinely and systematically assesses unwarranted fees against consumers, resulting in premature default that often gives rise to unfair and improper foreclosure proceedings," according to the complaint.
The Ohio Attorney General has also filed a suit, it was reported yesterday.
In his lawsuit, the Ohio Attorney General said American Home required borrowers to sign loan modifications, forbearance agreements that contained "illegal and unfair provisions and are unconscionably one- sided" in the company's favour.