Loan Factory sued by originators for alleged use of unauthorized information

Key Takeaways:

– Loan Factory, a California-based mortgage brokerage, was sued by a class of loan originators
– The loan originators allege that Loan Factory used their personal and professional information without authorization on its website
– Loan officer Derek Daniel Bobadilla and the class members claim they never worked with Loan Factory
– Loan Factory displayed their loan officer profiles on their website without consent
– Loan Factory allegedly drove internet traffic and business to its site using the loan officers’ information
– Thuan Nguyen, CEO of Loan Factory, stated they took down the information after receiving a complaint
– The lawsuit claims Loan Factory violated California common law by misappropriating the loan officers’ information
– Bobadilla and the class members are seeking relief including damages, repayment of profits, royalties, and an injunction against Loan Factory’s conduct.

HousingWire:

California-based mortgage brokerage Loan Factory was sued by a class of loan originators, who allege that the company used their personal and professional information, without their authorization, on its website in an attempt to drive business.

Loan officer Derek Daniel Bobadilla and the class members represented by Johnson & Johnson LLP claimed that they have never worked with Loan Factory, but the lender displayed their loan officer profiles on the “Find a Loan Officer” page of its website without their consent, according to a suit filed this week in the California Superior Court of Santa Clara County.

Around July 2023, Bobadilla and the class members discovered the lender “knowingly used plaintiff and the class’ names, images, likenesses, and personal information,” the suit alleges.

Individuals searching for Bobadilla and the class members on the internet were being automatically directed to Loan Factory’s website, the suit states.

“Using plaintiff’s and class members’ names, photographs, likenesses, and personal information, Loan Factory drove internet traffic and business to its site,” it noted.

Loan Factory engaged in “unlawful business” by profiting from the commercial use of personal information it misappropriated without consent and while employing “deception and trickery,” the suit alleges.

Thuan Nguyen, CEO of Loan Factory, told HousingWire that the company took down the loan officers’ information immediately after it received a complaint. He declined to comment further.

The lawsuit claims that Loan Factory violated California common law that prohibits misappropriation of a name or likeness, and that loan officers were harmed through the “unlawful profiting from its exploitation” of their information. 

Bobadilla and the class members are seeking relief that includes statutory damages, repayment of illegally obtained profits, royalties for the use of their names, and an injunction prohibiting Loan Factory’s unlawful conduct.

Johnson & Johnson LLP declined to comment on active litigation.

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Property Chomp’s Take:

So, have you heard about the recent lawsuit against Loan Factory, a mortgage brokerage based in California? It seems that a class of loan originators is taking legal action against the company for using their personal and professional information without their permission.

According to the lawsuit filed in the California Superior Court of Santa Clara County, loan officer Derek Daniel Bobadilla and the class members claim that Loan Factory displayed their loan officer profiles on its website’s “Find a Loan Officer” page, even though they had never worked with the company. This unauthorized use of their names, images, and personal information allegedly drove internet traffic and business to Loan Factory’s site.

It’s pretty shocking to think that a company would take such liberties with individuals’ personal information for their own gain. The lawsuit accuses Loan Factory of profiting from the commercial use of this misappropriated information and engaging in deceptive practices.

Thuan Nguyen, CEO of Loan Factory, has stated that the company promptly took down the loan officers’ information after receiving a complaint. However, the class members are seeking relief that includes statutory damages, repayment of illegally obtained profits, royalties for the use of their names, and an injunction against Loan Factory’s unlawful conduct.

It’s a reminder of the importance of safeguarding personal information and respecting individuals’ privacy rights. Let’s hope that this lawsuit leads to greater accountability and transparency in the way companies handle sensitive data.

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