SAN DIEGO, Oct. 8 /PRNewswire/ -- Krause, Kalfayan, Benink & Slavens, LLP filed a class action lawsuit on October 8, 2010 in Riverside Superior Court on behalf of a nationwide class of borrowers against Commercial Lending Capital, Inc., of Corona, California, and Scott Hugh Oakley. CLC and Oakley are brokers licensed by the California Department of Real Estate ("DRE").
CLC allegedly procures "cash out" loans for persons seeking to refinance commercial properties. The lawsuit, brought by Mark Horn of Edmonds, WA, alleges that CLC and Oakley, CLC's designated officer, engage in the practice of collecting advance fees, such as due diligence fees, from potential borrowers in a manner that violates California law.
California law requires a broker seeking to charge an advance fee to first submit the form of agreement to the DRE for approval. The law further requires the broker to maintain the funds in a separate trust account, and to provide verified and regular accountings to the potential borrowers. The suit claims that CLC fails to meet these conditions and uses the advance fees for general operating expense.
Horn's suit also alleges that CLC's true business is in the collection of fees, and not in obtaining loans for borrowers, and that CLC almost always fails to procure a loan. CLC was unable to obtain a suitable loan for Horn and refused to refund the $6,200 in advance fees Horn paid to CLC.
This suit seeks an injunction to prevent CLC from further violations of the law.
About Krause Kalfayan Benink & Slavens, LLP.: KKBS is a boutique law firm located in San Diego, CA representing consumers, shareholders, and businesses in individual and class action litigation.
If you wish to discuss this action or have any questions concerning the lawsuit or rights or interests with respect to these matters, please contact attorneys for plaintiff, Eric J. Benink at Krause, Kalfayan, Benink & Slavens, LLP, 625 Broadway, Suite 635, San Diego, CA 92101, Tel: (619) 232-0331, email: email@example.com.
SOURCE Krause, Kalfayan, Benink & Slavens, LLP