Fast-Growing Lake Michigan Credit Union Holds Hostage Loan Officer Pay

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DETROIT, Sept. 15, 2022 /PRNewswire/ -- Last week, two former Lake Michigan Credit Union (LMCU) loan officers accused the bank of violating federal and state labor laws.

Metadata
Provider: 
PR NewswirePR Newswire
Retrieved on: 
Thursday, September 15, 2022
Information
Tags: 
Loan, Lake Michigan Credit Union, United States district court, LMCU, P.C, Family, Sale, Loan officer, Insurance, Defendant
Geotags: 
MICHIGAN, UNITED STATES
Organisation: 
CLARKSON LAW FIRM, PC
Summary
Key Points: 
  • DETROIT, Sept. 15, 2022 /PRNewswire/ -- Last week, two former Lake Michigan Credit Union (LMCU) loan officers accused the bank of violating federal and state labor laws.
  • The pair allege that as much as half of their work was completed without pay on completing post-sale administrative tasks reserved for hourly paid loan processors.
  • The former employees see irony in Michigan's fastest-growing credit union professing family values as its recipe for success: "Defendant falsely portrays company values of support, respect, and community.
  • Defendant markets a supportive work environment, when in reality, Defendant exploits Loan Officers' time, energy, and ultimately, denies them their rightful compensation."


Fast-Growing Lake Michigan Credit Union Holds Hostage Loan Officer Pay

DETROIT, Sept. 15, 2022 /PRNewswire/ -- Last week, two former Lake Michigan Credit Union (LMCU) loan officers accused the bank of violating federal and state labor laws. In a 57-page class action lawsuit filed by public interest powerhouse Clarkson Law Firm, P.C., Brad Cook and Hannah Ritzenhein detailed allegations against LMCU of exploiting current and former loan officers by withholding the loan officers' commissions unless they completed unpaid work outside their job duties. The pair allege that as much as half of their work was completed without pay on completing post-sale administrative tasks reserved for hourly paid loan processors.

According to the lawsuit, "LMCU's unlawful wage scheme works like this: (1) LMCU lures Loan Officers to their company under a compensation structure that is 100% commission-based…; (2) LMCU then piles on additional duties and responsibilities akin to those of a Loan Processor after the fact, which take up nearly 50% of the Loan Officer's time and energy; and (3) LMCU pays the Loan Officers zero dollars for nearly 50% of their work."

The former employees see irony in Michigan's fastest-growing credit union professing family values as its recipe for success: "Defendant falsely portrays company values of support, respect, and community. Ironically, Defendant states, 'Beyond the numbers, figures, and calculations, when you come to work for LMCU, you become part of a family. This is a family that values your efforts and treats you with respect, dignity, and fairness.' Defendant markets a supportive work environment, when in reality, Defendant exploits Loan Officers' time, energy, and ultimately, denies them their rightful compensation."

Cook and Ritzenhein are seeking unpaid wages and structural changes to the credit union's compensation system so that other loan officers receive the money and employment standards they deserve.

The case is pending before the Honorable Denise Page Hood in the United States Federal District Court for the Eastern District of Michigan, Case Number 2:22-cv-12074-DPH-APP. Visit clarksonlawfirm.com for updates on this case.

Contact: [email protected] 

Cision View original content:https://www.prnewswire.com/news-releases/fast-growing-lake-michigan-credit-union-holds-hostage-loan-officer-pay-301624979.html

SOURCE Clarkson Law Firm, PC

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