Washington Mutual agrees to pay $13 million to settle loan fee claims

By Caroline Salls

Pittsburgh, May 2 - Washington Mutual, Inc. received court approval of a settlement of a class action loan fee lawsuit, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The class action plaintiffs alleged that Washington Mutual subsidiaries charged penalties and finance charges before settlement of the class members' mortgage, home and co-op loans and home equity loans or lines of credit.

Under the agreement, Washington Mutual will deposit $13 million into a settlement fund for distribution to the plaintiffs.

Washington Mutual, a Seattle-based savings and loan holding company, filed for Chapter 11 bankruptcy on Sept. 26, 2008. Its Chapter 11 case number is 08-12229.

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