CHARLOTTE, N.C. and JACKSONVILLE, Fla., July 27 /PRNewswire-FirstCall/ -- LendingTree, Inc.(R) and GreenLink LLC today announced a joint venture to offer real estate settlement services. The new vendor management company, to be called LendingTree Settlement Services and based in Jacksonville, Florida, will offer appraisal, flood insurance, title and closing services. LendingTree is the majority owner. Terms of the deal were not disclosed.
LendingTree is an online exchange that connects consumers with lenders and REALTORS(R). Formed in 2000, GreenLink is Wachovia's settlement services subsidiary.
Said David Anderson, general manager of LendingTree Settlement Services, "This is an important step forward in LendingTree's strategy to simplify and streamline the settlement services process for both our lender partners and our customers. Given its nationwide network of thousands of vendors, strong technology platform and unmatched management expertise, GreenLink is the ideal partner."
Patrick D. McElhaney, chief executive officer of GreenLink, added, "We are delighted to have this opportunity to partner with the premier brand name in the Internet lending space. GreenLink's proven expertise in building and operating a successful settlement services company coupled with LendingTree's distribution and customer management expertise is a winning combination. We look forward to an exciting and successful future."
About GreenLink and Wachovia
GreenLink LLC supplies a range of national real estate settlement services such as appraisals, title searches, title insurance, closings and flood certifications to Wachovia's consumer lending and servicing units. GreenLink currently processes more than 1,000,000 transactions a year.
Wachovia Corporation (NYSE: WB) is one of the largest providers of financial services to retail, brokerage and corporate customers throughout the East Coast and the nation, with assets of $411 billion, market capitalization of $61.7 billion and stockholders' equity of $33.3 billion at March 31, 2004. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 12 million client relationships (including households and businesses), primarily in 11 East Coast states and Washington, D.C. Online banking and brokerage products and services also are available through Wachovia.com.
Monday, June 29, 2009
WACHOVIA SETTLEMENT ANNOUNCED
Wachovia Corp. will buy back $8.5 billion in auction-rate securities in a nationwide settlement, it was announced this morning.
Saturday, June 27, 2009
Win Settlement for Overtime Pay
A federal judge in Los Angeles this week okayed a $39 million preliminary settlement in a case involving Wachovia Corp. and more than 10,000 stock brokers who alleged they were denied overtime pay and other wages.
As reported by The National Law Journal, the crux of the brokers’ case was their claim they were misclassified as exempt from overtime under the federal Fair Labor Standards Act, as well as state wage and hour laws. They also claimed they weren’t reimbursed for business expenses and didn’t receive paychecks promptly after they left the firm.
Wachovia made a motion for preliminary approval, citing that new ownership from its recent acquisition by Wells Fargo & Co. Inc. would result in new policy and practices that could complicate the litigation. It also cited the financial duress of the financial industry.
A final approval hearing is set for Oct. 5.
In addition, the Law Journal reported that the same judge, U.S. District Judge David O. Carter, approved a final settlement where Prudential Financial Inc., agreed to pay $11 million to former stock brokers to settle seven class action suits filed against it by financial advisors and producing managers who worked at Prudential before its brokerage unit was bought by Wachovia in 2003.
As reported by The National Law Journal, the crux of the brokers’ case was their claim they were misclassified as exempt from overtime under the federal Fair Labor Standards Act, as well as state wage and hour laws. They also claimed they weren’t reimbursed for business expenses and didn’t receive paychecks promptly after they left the firm.
Wachovia made a motion for preliminary approval, citing that new ownership from its recent acquisition by Wells Fargo & Co. Inc. would result in new policy and practices that could complicate the litigation. It also cited the financial duress of the financial industry.
A final approval hearing is set for Oct. 5.
In addition, the Law Journal reported that the same judge, U.S. District Judge David O. Carter, approved a final settlement where Prudential Financial Inc., agreed to pay $11 million to former stock brokers to settle seven class action suits filed against it by financial advisors and producing managers who worked at Prudential before its brokerage unit was bought by Wachovia in 2003.
Joins ARS Settlement Bandwagon
Wachovia is the latest bank to settle charges over its sales of auction-rate securities (ARS), according to simultaneous announcements by New York Attorney General Andrew Cuomo and the Securities and Exchange Commission.
The bank's Wachovia Securities and Wachovia Capital Markets units will return more than $8.5 billion to investors, under an agreement with Cuomo.
Wachovia will offer to buy back, no later than November 28, about $5.7 billion in illiquid ARS from retail customers, charities, and small businesses. Then, starting June 10, 2009, and concluding June 30, the bank will offer to purchase the roughly $3.1 billion of ARS held by all other Wachovia investors. According to Cuomo, Wachovia will also pay damages to investors who sold securities for a loss.
In addition, Wachovia agreed to pay New York State and North American Securities Administrators Association (NASAA) civil penalties totaling $50 million.
"Wachovia marketed and sold auction rate securities as safe, cash-equivalent products, when in fact they faced increasing liquidity risk," stated a press release from Cuomo's office.
"We continue to work with state regulators and others to bring real relief to investors who were not given the forthright information they needed in the process of purchasing auction rate securities," said Linda Chatman Thomsen, director of the SEC's Division of Enforcement.
In a separate statement, Karen Tyler, president of the NASAA, noted that the settlement followed an investigation led by the Office of the Missouri Secretary of State into investors' complaints that Wachovia misled them by portraying ARS as cash equivalents.
"This settlement is yet another important step in our ongoing effort to make sure that investors across the country quickly regain access to their funds that were placed in auction rate securities," said Tyler. "Missouri Secretary of State Robin Carnahan and her staff in the Securities Division deserve enormous credit for spearheading the investigation and leading the negotiations that resulted in an excellent settlement."
Within the past eight days, Cuomo has finalized agreements restoring nearly $35 billion of liquidity to thousands of investors nationwide. Other financial institutions to settle include JPMorgan, Morgan Stanley, UBS, and Citigroup.
The SEC noted that Wachovia faces the prospect of a financial penalty to the SEC after it has completed its obligations under the settlement agreement. As to the amount of the penalty, if any, the determinations will take into account, among other things, an assessment of whether Wachovia has satisfactorily completed its obligations under the settlement, and the costs incurred by the bank in meeting those obligations, including other penalties incurred and the cost of remediation.
The bank's Wachovia Securities and Wachovia Capital Markets units will return more than $8.5 billion to investors, under an agreement with Cuomo.
Wachovia will offer to buy back, no later than November 28, about $5.7 billion in illiquid ARS from retail customers, charities, and small businesses. Then, starting June 10, 2009, and concluding June 30, the bank will offer to purchase the roughly $3.1 billion of ARS held by all other Wachovia investors. According to Cuomo, Wachovia will also pay damages to investors who sold securities for a loss.
In addition, Wachovia agreed to pay New York State and North American Securities Administrators Association (NASAA) civil penalties totaling $50 million.
"Wachovia marketed and sold auction rate securities as safe, cash-equivalent products, when in fact they faced increasing liquidity risk," stated a press release from Cuomo's office.
"We continue to work with state regulators and others to bring real relief to investors who were not given the forthright information they needed in the process of purchasing auction rate securities," said Linda Chatman Thomsen, director of the SEC's Division of Enforcement.
In a separate statement, Karen Tyler, president of the NASAA, noted that the settlement followed an investigation led by the Office of the Missouri Secretary of State into investors' complaints that Wachovia misled them by portraying ARS as cash equivalents.
"This settlement is yet another important step in our ongoing effort to make sure that investors across the country quickly regain access to their funds that were placed in auction rate securities," said Tyler. "Missouri Secretary of State Robin Carnahan and her staff in the Securities Division deserve enormous credit for spearheading the investigation and leading the negotiations that resulted in an excellent settlement."
Within the past eight days, Cuomo has finalized agreements restoring nearly $35 billion of liquidity to thousands of investors nationwide. Other financial institutions to settle include JPMorgan, Morgan Stanley, UBS, and Citigroup.
The SEC noted that Wachovia faces the prospect of a financial penalty to the SEC after it has completed its obligations under the settlement agreement. As to the amount of the penalty, if any, the determinations will take into account, among other things, an assessment of whether Wachovia has satisfactorily completed its obligations under the settlement, and the costs incurred by the bank in meeting those obligations, including other penalties incurred and the cost of remediation.
Friday, June 26, 2009
IMPORTANT- Wachovia Settlement
Wachovia Settlement Regarding Payment Processors for Telemarketers
This website was established to provide information about the resolution of settlements directly involving the Office of the Comptroller of the Currency of the United States, class action plaintiffs in the Faloney/Harrison actions, and Wachovia Bank, N.A. The lawsuit is about Wachovia Bank’s account relationships with payment processors that transacted business with telemarketers, who allegedly engaged in fraudulent telemarketing practices.
The settlement is intended to reimburse class members for losses that occurred as a result of the telemarketing activity. The reimbursement has two components: (1) refunding the money that was debited from class members' accounts through a transaction initiated by one of the payment processors, and (2) refunding bank fees that resulted from these transactions. No claims procedure is necessary for the refund of money directly debited, however refund of bank fees is subject to a claims process discussed on this website.
This website was established to provide information about the resolution of settlements directly involving the Office of the Comptroller of the Currency of the United States, class action plaintiffs in the Faloney/Harrison actions, and Wachovia Bank, N.A. The lawsuit is about Wachovia Bank’s account relationships with payment processors that transacted business with telemarketers, who allegedly engaged in fraudulent telemarketing practices.
The settlement is intended to reimburse class members for losses that occurred as a result of the telemarketing activity. The reimbursement has two components: (1) refunding the money that was debited from class members' accounts through a transaction initiated by one of the payment processors, and (2) refunding bank fees that resulted from these transactions. No claims procedure is necessary for the refund of money directly debited, however refund of bank fees is subject to a claims process discussed on this website.
Street Talk: Wachovia Settlement?
♦ The legal battle between Citigroup and Wells Fargo raged over the weekend as both banks sought the upper hand in their bid for Wachovia. A Fed-led settlement which would divide Wachovia's assets may put an end to the dispute. [NYT, WSJ]
♦ Bank of America has agreed to settle government claims related to Countrywide Financial. The total price tag could exceed $8.6 billion. [WSJ]
♦ Dick Fuld will make his first appearance in weeks when he speaks before a House committee today. [NYP]
♦ Eli Lilly has agreed to acquire ImClone Systems for $6.5 billion. [Reuters]
♦ Stocks tumbled this morning in Europe and Asia amid concerns the crisis is spreading to the world economy. [DB, NYT]
♦ BNP Paribas has agreed to buy Fortis's units in Belgium and Luxembourg for $19.8 billion after a government rescue failed. German state and financial institutions also put together a rescue package for Hypo Real Estate Holding. [Bloomberg]
♦ Hank Paulson is expected to tap Neel Kashkari to oversee Treasury's $700 billion program to buy distressed assets from financial institutions. [WSJ]
♦ J. Christopher Flowers is taking a beating: He fund has lost more than $2 billion in recent weeks. [WSJ]
♦ Phil Falcone's bet on Wachovia just before the short-selling rule was enacted may have earned him as much as $2.5 billion on a single trade. [NYP]
♦ Ebay is cutting 10 percent of its workforce. [Reuters]
♦ Bank of America has agreed to settle government claims related to Countrywide Financial. The total price tag could exceed $8.6 billion. [WSJ]
♦ Dick Fuld will make his first appearance in weeks when he speaks before a House committee today. [NYP]
♦ Eli Lilly has agreed to acquire ImClone Systems for $6.5 billion. [Reuters]
♦ Stocks tumbled this morning in Europe and Asia amid concerns the crisis is spreading to the world economy. [DB, NYT]
♦ BNP Paribas has agreed to buy Fortis's units in Belgium and Luxembourg for $19.8 billion after a government rescue failed. German state and financial institutions also put together a rescue package for Hypo Real Estate Holding. [Bloomberg]
♦ Hank Paulson is expected to tap Neel Kashkari to oversee Treasury's $700 billion program to buy distressed assets from financial institutions. [WSJ]
♦ J. Christopher Flowers is taking a beating: He fund has lost more than $2 billion in recent weeks. [WSJ]
♦ Phil Falcone's bet on Wachovia just before the short-selling rule was enacted may have earned him as much as $2.5 billion on a single trade. [NYP]
♦ Ebay is cutting 10 percent of its workforce. [Reuters]
Thursday, June 25, 2009
Pennsylvania Receiving Settlement Checks
As a Wachovia (now-to-be Wells Fargo) customer, I keep an eye out for any mentions of them in the news. Right now, Wachovia customers in Pennsylvania are receiving settlement checks.
These checks are part of a $150 million court settlement that Wachovia agreed to. Customers will be receiving different amounts, one figure that I’ve heard is $149. They’ll be sending the checks to 742,000 consumers. The first checks were mailed on December 11, but they’re still be mailed.
You don’t have to be part of the lawsuit to receive the settlement, as it was made on behalf of all Wachovia customers in PA who ordered products or services from certain telemarketing firms between 2003 and 2007 and paid by electronically created checks that didn’t require a customer’s signature. The amount of individual settlements depends on how much was spent on these orders.
So even though you’re a Wachovia customer in PA, you may not have been affected and therefore won’t receive anything from the settlement.
Apparently this banking arrangement Wachovia had with the telemarketers allowed for fraudulent transactions, hence the settlement refund. Those affected will also receive a claim form for bank fees they may have had to pay if their bank accounts were overdrawn.
These checks are part of a $150 million court settlement that Wachovia agreed to. Customers will be receiving different amounts, one figure that I’ve heard is $149. They’ll be sending the checks to 742,000 consumers. The first checks were mailed on December 11, but they’re still be mailed.
You don’t have to be part of the lawsuit to receive the settlement, as it was made on behalf of all Wachovia customers in PA who ordered products or services from certain telemarketing firms between 2003 and 2007 and paid by electronically created checks that didn’t require a customer’s signature. The amount of individual settlements depends on how much was spent on these orders.
So even though you’re a Wachovia customer in PA, you may not have been affected and therefore won’t receive anything from the settlement.
Apparently this banking arrangement Wachovia had with the telemarketers allowed for fraudulent transactions, hence the settlement refund. Those affected will also receive a claim form for bank fees they may have had to pay if their bank accounts were overdrawn.
Checks Issued to 740,000 Consumers
Checks for $149 have been sent to 740,000 consumers across the nation as part of a $150 million settlement that Charlotte, N.C.-based Wachovia Corp. (NYSE:WB) agreed to earlier this year in U.S. District Court in Philadelphia.
The settlement arose from banking arrangements Wachovia had with telemarketers to process payments for product orders made over the telephone. Individuals who receive settlement checks ordered products or services from one of the telemarketing firms and paid by remotely created checks that didn’t require a customer’s signature.
The telemarketers used the remotely created check to withdraw funds from customers’ accounts, regulators said.
The federal Office of the Comptroller of the Currency says a large percentage of consumers said the checks were never authorized or that they never received the products or services offered by the telemarketers.
In agreeing to the settlement, Wachovia did not admit any wrongdoing.
The checks from Wachovia were mailed last week by the United States Court Settlement Administrator. As a result of the bank’s settlement of a related class action lawsuit, the mailing also contains a process for consumers to request further reimbursement if they believe they have been charged for bank fees that would not have been imposed had the transactions in question not occurred.
Wachovia's brokerage division, Wachovia Securities, is based in St. Louis.
The settlement arose from banking arrangements Wachovia had with telemarketers to process payments for product orders made over the telephone. Individuals who receive settlement checks ordered products or services from one of the telemarketing firms and paid by remotely created checks that didn’t require a customer’s signature.
The telemarketers used the remotely created check to withdraw funds from customers’ accounts, regulators said.
The federal Office of the Comptroller of the Currency says a large percentage of consumers said the checks were never authorized or that they never received the products or services offered by the telemarketers.
In agreeing to the settlement, Wachovia did not admit any wrongdoing.
The checks from Wachovia were mailed last week by the United States Court Settlement Administrator. As a result of the bank’s settlement of a related class action lawsuit, the mailing also contains a process for consumers to request further reimbursement if they believe they have been charged for bank fees that would not have been imposed had the transactions in question not occurred.
Wachovia's brokerage division, Wachovia Securities, is based in St. Louis.
Checks Real, Better Business Bureau Says
The Better Business Bureau is assuring individuals who recently received a check from a federal court in Pennsylvania that the checks are legitimate and part of a settlement agreement with Wachovia Bank related to telemarketing fraud.
The agency said it has been receiving calls from consumers concerned about the legitimacy of the $149 checks and confused why they are included in the settlement.
The agency said it has been receiving calls from consumers concerned about the legitimacy of the $149 checks and confused why they are included in the settlement.
The checks are part of a $150 million settlement Wachovia agreed to in U.S. District Court in Philadelphia, Pennsylvania, the bureau said in a press release.
"These checks are legitimate and consumers who receive them can safely deposit the check in their banking account or cash the check at a Wachovia branch," said Tom Bartholomy, president of the Better Business Bureau of Southern Piedmont in Charlotte, North Carolina.
Wachovia began mailing checks in varying amounts to about 742,000 consumers on December 11, according to the U.S. attorney's office for the Eastern District of Pennsylvania.
Regulators said the settlement agreement arose from banking arrangements that Wachovia had with telemarketers to process payments for product orders made over the telephone. Individuals who receive settlement checks ordered products or services from one of these telemarketing firms between 2003 and 2007 and paid by electronically created checks that didn't require a customer's signature.
In addition to checks for the amount taken out of their accounts, victims also will receive a claim form for bank fees they may have had to pay when their account was overdrawn because of unauthorized withdrawals, the U.S. attorney's office said.
Consumers To Get $150 Million in Wachovia
More than 700,000 Americans' holidays are about to get a little brighter -- an average of $203 brighter -- as the result of a settlement between Wachovia Bank and the federal government.
On Thursday, Wachovia began to mail out checks totaling more than $150 million to some 740,000 consumers. That averages out to $203 per payment. The payout stems from two class action lawsuits regarding allegedly inappropriate acts committed by payment processors that had relationships with Wachovia. The settlement was agreed to by the bank and the Office of the Comptroller of the Currency.
The case involved "remotely created checks," which -- as the name suggests -- aren't created by the account holder and are not signed by the account holder. In place of the signature, the checks would bear text such as "Authorized by your depositor, no signature required."
According to the OCC release, "The telemarketers obtained bank account information over the phone by offering consumers a range of questionable products and services. With the account information obtained during the call, the telemarketer would direct the payment processor to create a remotely created check. The payment processor would then deposit the remotely created check into the processor's account at Wachovia, and funds were then withdrawn from consumers' accounts to make payment on the check and deposited into the processor's account."The companies involved were Payment Processing Center, LLC, FTN Promotions Inc., Suntasia Inc., Netchex Corp., and Your Money Access LLC, and related companies.
Many Wachovia account holders reported the unusual activity in their accounts as it was happening and have already been reimbursed. However, Wachovia said in a release that this settlement will ensure that all affected parties will be reimbursed in full for any amount that had been removed from their accounts.
Wachovia, which agreed in October to be purchased by Wells Fargo for $15.1 billion in stock, added that any consumers who incurred fees caused by the telemarketing transactions may have those fees refunded in full by filing a claim with Rust Consulting Inc.
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