Attorney General Andrea Joy Campbell has filed a lawsuit against Hometap in Suffolk County Superior Court, accusing the company of exploiting financially vulnerable homeowners through high-cost home equity contracts. The lawsuit claims Hometap concealed critical costs and marketed its products to those with substantial home equity but lacking sufficient income or other assets, such as the elderly and those with poor credit. The AG’s office argues Hometap's offerings resemble unlawful reverse mortgages, as they fail to assess clients' overall financial situations, thus increasing the risk of foreclosure for vulnerable populations.
Amidst a growing affordability crisis, our lawsuit alleges that Hometap deliberately preyed upon financially vulnerable homeowners for profit, stripping them of their hard-earned home equity.
The AG alleges that Hometap charges unlawfully high interest and offers fast cash to its clients without assessing financial factors such as income, employment, and assets.
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