Lawsuit Challenges Unison's Deceptive Mortgage Practices
Lawsuit Filed Over Alleged Deceptive Mortgage Practices by Unison
Washington, D.C.—The National Association of Consumer Advocates (NACA), together with the AARP Foundation and the law firm Singleton Schreiber, has initiated legal proceedings against Unison and its affiliated entities. The lawsuit, filed in the Superior Court of the District of Columbia, challenges the company's marketing of a "no-debt" home equity solution. It alleges that this product operates as an unlicensed mortgage loan, potentially burdening homeowners financially.
The core issue, as highlighted in the complaint, concerns Unison's description of the product as an "equity sharing agreement" or "home equity investment." The company claims it involves no loans, debt obligations, interest payments, or monthly fees, which the lawsuit argues is misleading. Instead, this arrangement is alleged to place homeowners in high-cost mortgage scenarios, with Unison securing a lien on the property upon providing a cash advance.
William Alvarado Rivera, Senior Vice President of Litigation at AARP Foundation, states, "These agreements mislead homeowners into believing they access equity without risk, which can jeopardize their financial security, especially in later life.” The lawsuit accuses Unison of operating without appropriate licensing, breaching local and federal consumer protection regulations concerning mortgage loans. By categorizing their products as equity investments, the company allegedly bypasses necessary disclosure and consumer protection protocols.
Elizabeth Aniskevich, Senior Counsel at Singleton Schreiber, emphasizes the potential threats posed by such unregulated mortgage products, underscoring the necessity for stringent oversight. The lawsuit seeks to leverage the District of Columbia Consumer Protection Procedures Act to halt Unison's activities within the district, nullify existing agreements, and shield homeowners from further adverse impacts.
Ira Rheingold, Executive Director of NACA, reflects on the broader implications, stating, “Unison’s approach is a repackaged iteration of previous schemes that risk eroding homeowner wealth.” The legal action is further supported by an individual case launched on behalf of Lilly Evans, a local senior citizen, by the AARP Foundation and Legal Counsel for the Elderly.
About the Involved Organizations
AARP Foundation: Focuses on financial resilience for older adults through employment initiatives, benefits access, and essential services.
Singleton Schreiber: Specializes in consumer protection law and complex litigations, including high-profile cases against corporations for consumer rights violations.
Legal Counsel for the Elderly (LCE): Provides legal and social work services to assist older adults, advocating for legal reforms to support their dignity and rights.
National Association of Consumer Advocates (NACA): Nonprofit association advocating for consumer rights and protection.
For further inquiries, contact Madison Daniels at mdaniels@aarp.org.