Franklin First Financial Lawsuit


A Franklin First Financial Corporation is currently under investigation for its alleged actions related to the Franklin bank foreclosures process. In particular, this corporation is being investigated for its use of “at will” employment clauses in its contracts with its bank customers. As many foreclosure victims have discovered, these clauses can make it virtually impossible for them to recover their outstanding home mortgage debts.

“At will” employment clauses are specifically designed to allow a corporation to hire whomever it wants for any reason – even if it’s to replace an existing employee. In other words, this type of employment clause allows an employer to fire employees without any kind of disciplinary action or loss of benefits such as medical and dental coverage.

Most importantly, however, the at will clause allows Franklin to deny all legal representation to homeowners who are seeking to recover their homes. That is why homeowners should be very cautious when they consider hiring a foreclosure lawyer. Many attorneys will attempt to get an employee’s family member to represent the homeowner in court, often on behalf of the corporation itself. The result is that they are not acting as independent legal counsel for the homeowner, but rather working on the corporation’s behalf.

The Franklin First Financial lawsuit, which has been filed against the company by several former employees, highlights the dangers inherent in using a corporation’s “at will” employment agreement when trying to recover your home mortgage debt. The complaint in the complaint against the Franklin Corporation points to several instances where Franklin had a policy that required employees to sign a “non-disclosure” contract if they wished to discuss their job with anyone else. This was used to “cover their own butt” when it came to potential lawsuits related to their company’s activities related to the mortgage loans that were being processed.

In some instances, former employees claim that they signed the document without reading it before they left their job with the bank and then found out that the bank would continue to process the loans despite the fact that they could not legally represent the homeowner in court on their behalf. If an attorney is hired to help you, he or she will likely be prohibited from telling anyone else about the existence of the document, even with the advice of his or her current employer.

At will employment clauses are particularly dangerous in foreclosed home foreclosure cases. Since a corporation is not required to compensate the former employee or the employee’s family members for the loss of income they have sustained due to the termination, the corporation does not have any liability for the loss of wages or benefits provided to those who are terminated. As a result, the corporation can easily deny any compensation to the former employee to avoid having to pay medical, funeral expenses and other costs associated with the wrongful death.

At will employment clauses also pose a danger to homeowners when homeowners consider hiring outside counsel. Unfortunately, many attorneys are not well-versed in employment law and may not know that a company cannot terminate employees with notice. As a result, they may advise homeowners to ignore the possibility of a lawsuit in order to avoid potentially paying the company’s expenses and attorney fees.

However, the Franklin First Financial lawsuit points to many other problems with working with a loan modification company, such as improper or late payments and other financial losses. For example, a company might not have enough information to provide for the homeowner’s specific needs when it comes to financial assistance and might not have the proper experience or qualifications to make sure that the foreclosure loan modification application is handled properly.

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