CALIFORNIA – A US Department of Labor investigation has determined that a former senior vice president and two managers at PrimeLending must compensate two California employees with $35,000 in emotional damages and cover their legal fees. These workers faced wrongful termination after exposing fraudulent practices by a branch manager.
According to the investigation conducted by the Occupational Safety and Health Administration (OSHA), the branch manager pressured loan applicants into accepting unjust fees due to internal processing delays within the company.
James D. Wulff, OSHA’s Regional Administrator in San Francisco, stated that employees who report consumer fraud are protected by federal law from any form of retaliation. In this case, PrimeLending managers face personal fines for retaliation under the provisions of the Consumer Financial Protection Act.
In addition to personal damages, OSHA ordered PrimeLending to pay lost wages and interest to the affected employees. Furthermore, the company must expunge the employment records of both workers, post a notice against retaliation in all its branches, and provide training to its employees regarding their rights under the Consumer Financial Protection Act.
Both PrimeLending and the sanctioned managers have the option to appeal OSHA’s order to the US Department of Labor’s Administrative Law Tribunal.
