Lehrman Law Files Class Action Complaint Against Flagstar Bank Over Alleged Deceptive CD Practices

Boca Raton, Florida – A class action lawsuit has been filed against Flagstar Bank by Lehrman Law and Scott D. Owens, P.A., alleging deceptive practices in the handling of certificate of deposit (CD) accounts. The complaint, filed on November 13, 2024, in a Florida federal court, accuses the bank of violating state and federal consumer laws by rolling funds from matured CDs into low-interest CDs without the account holder’s knowledge or consent.

The lead plaintiff, Florida resident Tunny Solomon, claims that Flagstar, as the successor to New York Community Bank, converted her high-interest CD into a long-term, low-interest CD without authorization when it matured in December 2019. Solomon had originally opened a 14-month CD in 2018 with a $50,000 deposit and an interest rate of 2.65%. However, when the CD matured, Flagstar allegedly moved her funds into a 300-month CD offering a mere 0.02% interest rate—well below the original terms and far below prevailing market rates.

According to the lawsuit, this practice resulted in substantial financial losses for Solomon and others similarly situated. The plaintiff has described these accounts as “zombie CDs,” noting that they were opened without customer consent, and the bank failed to provide required quarterly statements to inform account holders of the changes. Solomon contends that Flagstar’s actions were deceptive and intentionally concealed, depriving customers of significant interest earnings they were entitled to receive.

The class action seeks certification on behalf of all U.S. consumers who had funds transferred from maturing CDs into new long-term CDs without authorization in the past four years. Claims include breach of contract, unjust enrichment, violations of banking regulations, and more. The lawsuit demands damages, legal fees, costs, and injunctive relief to stop Flagstar from continuing the alleged practices.

To learn more about the lawsuit or to learn more about Lehrman Law, visit our website: https://lehrmanlaw.com/

CASE INFORMATION

U.S. District Court for the Southern District of Florida
Tunny Solomon v. Flagstar Bank N.A
Case No. 1:24-cv-24482-XXXX

Lehrman Law is dedicated to protecting the rights of consumers and crime victims and ensuring they receive the compensation and resolution they deserve.

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Boca Raton, FL, 33487
877.269.0076 x848
https://lehrmanlaw.com/
Press Contact : Tiana Guzman

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