NPA Watchdogging Fairbanks Disputes

Community organizers with National Peoples Action have created a "Fairbanks Hot Spot Initiative" to identify and remedy consumer disputes with the troubled subprime servicer, Fairbanks Capital Corp., Salt Lake City.In the past four weeks, NPA has helped over 100 homeowners in five cities file complaints against the servicer. "Fairbanks has already waived thousands of dollars of fees and drastically reduced interest rates for many of these borrowers," NPA said. Fairbanks has instituted a policy whereby it temporarily halts the foreclosure process when it receives a qualified written dispute. Fairbanks has completed a management reorganization, and it has stopped accepting new business since it came under investigation by the federal government for its servicing practices. A company spokeswoman said Fairbanks is willing to work with community groups, but she maintained that the number of consumer complaints has been going down significantly.