Overcharges on mortgages lead to class-action suit

A lawsuit was filed against Washington Mutual Bank in Los Angeles County Superior Court last week by class-action lawyers who allege the Seattle-based savings and loan overcharged California customers who had agreed to allow funds to be withdrawn electronically to make mortgage payments.

The lead plaintiff is Manish Harpalani of Sunnyvale, who contends that over several days in January 2002 the company withdrew four times the amount needed to cover his payment.

The lawsuit, filed by Westlake Village law firm Masry & Vititoe in conjunction with the Tampa, Fla., firm James, Hoyer, Newcomer & Smiljanich, seeks class-action status, which would allow others with similar complaints to be included as plaintiffs.

A lawsuit against the lender was also filed in a district court in Minneapolis, alleging prepayment penalty overcharges and unauthorized payoff statement and tax fees. A Washington Mutual spokesman said the company does not comment on the specifics of pending litigation.