Nationscredit Financial Services Class Action Dismissed

Mortgage lenders tried to file a class action lawsuit against the company after allegedly paying a discount fee to reduce mortgage interest but not receiving a reduced rate. The lawsuit claimed Nationscredit did not reduce the interest. Nationscredit removed the suit to U.S. District Court in East St. Louis, arguing plaintiffs must bring a claim based on the charging of interest in federal court under the National Banking Act. Madison County Circuit Judge Lola Maddox has dismissed the proposed class action. (Jul-28-06) [THE MADISON ST. CLAIR RECORD]