Lawsuit: McLean Mortgage Sends False Rejection Letters

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McLean Mortgage Corporation is on the receiving end of a proposed class action lawsuit that claims it failed to provide specific reasons for denying loans to consumers. The plaintiffs say they applied for loans with the defendant, but received adverse action notices claiming that “the sole reason for the credit denial” was that they withdrew their applications. The suit argues, however, that the plaintiffs never withdrew their applications and were instead denied because they failed to meet the defendant’s requirements. They claim that McLean Mortgage was required to provide the specific reasons for any adverse action and failed to do so.

One of the plaintiffs further alleges that the defendant violated the Fair Credit Reporting Act by obtaining a copy of her credit report without a permissible purpose. She says McLean requested a copy of the report more than two weeks after it denied her application for refinancing, meaning she had no credit relationship with it at the time. As a result, her credit score was affected and her privacy was invaded, the complaint says.