Couple claims finance company ruined their credit

John Suayan, Galveston Bureau Aug. 4, 2010, 10:17am

GALVESTON - A Galveston County couple accuses Chase Home Finance LLC of mishandling a house payment made after Hurricane Ike and providing false information to credit bureaus, recent court documents say.

According to a lawsuit filed July 20 in Galveston County Court No. 3, Sam and Jennifer Finegan informed the defendant that they will pay off a loan for their Hurricane Ike-damaged residence when they receive their insurance claim.

The Finegans say the company assured them at various times their account would be put on hold pending receipt of the insurance payment while on other occasions the defendants told the couple something to the effect of "so what, how do we even know that you have a valid insurance claim?," according to the lawsuit.

The plaintiffs issued Chase a check for $20,000 in November 2008. They claim the defendant, however, did not properly apply the payment, but submitted negative credit information to various credit reporting agencies instead.

"Such reporting is totally inaccurate, unfair, and unjust," the original petition says.

It further explains that the Finegans demanded Equifax, Experian and Trans Union Corp. correct or remove any and all such detrimental reports to any credit reporting agencies that had received any such information related to the matter in question to no avail.

Chase continued to hold on to the funds without crediting the account, the suit says.

The plaintiffs argue that they tried to address the situation, but were unsuccessful in reaching an authority. Chase's errors and lack of response inflicted damage to the Finegans' credit rating, the suit states.

Six months after the payment was made, the Finegans' mortgage was paid in full. The plaintiffs then received a check which they assert contained an unnecessary overage.

Consequently, the Finegans contested the overage and demanded answers as to how the amount was calculated.

The suit says the principal balance of the plaintiffs' mortgage debt was $125,653.73, which was reportedly defrayed by a check for $159,022.15.

The Finegans received two checks, but the amounts were fractions of what they were actually owed, it adds.

Attorney Jack Ewing of League City is representing the plaintiffs, and Galveston County No. 3 Judge Roy Quintanilla is presiding over the case.

Cause No. 63,348

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