You are viewing the printer-friendly version of Bankrate Under Fire with Bait and Switch LawsuitBankrate Under Fire with Bait and Switch LawsuitSTUART, FL - A lawsuit against Bankrate Inc. claims that the popular website, intended to help borrowers, actually misleads them because some lenders posting rates don’t really honor those rates. The lawsuit alleges that this also puts honest advertisers on the website at a competitive disadvantage. American Interbanc Mortgage LLC, an ex-Bankrate.com advertiser, is suing Bankrate and seeks $16.5 million in damages and a $33 million in punitive damages. The lawsuit began back in 2002 when American Interbanc Mortgage sued other Bankrate advertisers claiming their rates were unrealistic and put American Interbanc Mortgage at a disadvantage. Later, American Interbanc Mortgage added Bankrate to the lawsuit, after Bankrate did not renew American Interbanc Mortgage’s advertising agreement. American Interbanc Mortgage alleges Bankrate knew what some dishonest advertisers were doing and let it happen. Court documents indicate that Bankrate has had hundreds of compaints about advertisers’ posted rates. The Wall Street Journal reports that one Bankrate advertiser confided to a Bankrate employee saying the borrower would require a “direct pipeline to God” to get the rate they had posted. Bankrate’s reach is wide. Their partnerships with Yahoo and AOL along with their newspaper presence allow their rate tables to be displayed to millions of people on a daily basis. The case is expected to go to trial this fall. pk |