Banking Law

Judge Lifts FDIC’s Oct. 14 Deadline for IndyMac Borrowers to File Claims

A California federal judge has temporarily lifted a federal deadline for borrowers to file federal claims against IndyMac Bank in a lawsuit that claims the plaintiffs were lured into deceptive loans.

The Daily Journal (sub. req.) reports on the reasons for the temporary restraining order by U.S. District Judge Alicemarie Stotler. Since the Federal Deposit Insurance Corp. took over the bank, those with claims have to pursue administrative remedies with the agency. It had set an Oct. 14 claims deadline, drawing objections from plaintiffs lawyers pursuing a class action suit.

The litigation claims IndyMac bank lured borrowers with a low teaser rate typically set at 1 percent and then jumping after just one month, the story says.

The request for a stay was filed by California law firms Kiesel Boucher Larson in Los Angeles and Arbogast & Berns in Tarzana. Lawyer Michael Eyerly of Kiesel Boucher told the Daily Journal that few potential claimants know of the deadline. He said the FDIC published a deadline notice but is not notifying potential claimants by mail.

The FDIC “wants to wipe out the claims” against IndyMac, Eyerly said.

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