Direct mail advertisements
sent by Quicken Loans Inc. to veterans in the state of Washington allegedly violated state laws.
The Detroit-based company has been charged with sending service members and veterans in the state false, deceptive and misleading advertisements.
Making the allegations is the Consumer Services Division of the Washington State Department of Financial Institutions, which filed the charges on June 15.
Quicken claims to be the biggest VA lender in the country with more than 125,000 VA loans — including more than 3,000 in Washington — funded during the last five years. Quicken reports more than 32,000 loans have been funded in the state for nearly $8 billion since 2010.
In a written statement, Quicken said that it was first alerted to the alleged violations by the state more than 10 months ago.
According to the state, Quicken
utilized an official-looking Department of Veterans Affairs seal — falsely implying an association with VA. The phrase, “Governed by: United States Veterans Department,” was included with a VA seal.
In addition, the online lender allegedly misrepresented mortgage costs and advertised adjustable-rate mortgages as having fixed rates.
More than 60 different direct-mail solicitations were reportedly sent to Washington service members and veterans last year.
The lender said it took the state’s allegations seriously and
conducted a thorough review in order to ensure veterans were offered the best possible mortgage products and that service and communication were maintained throughout the entire loan process.
“While we strongly disagree with several aspects of the state of Washington’s assertions and will address each of them in response to their statement, Quicken Loans has proactively taken steps to ensure all mailings reflect our brand and quality standards,” the statement said.
