Article: First Nationwide is sued on 'teaser' mortgage rate; Consumers Union sees an intent to deceive. (First Nationwide Bank)

SAN FRANCISCO -- Accusing First Nationwide Bank of price-gouging and deception, a consumer group has sued the San Francisco-based thrift, asking for a court order to halt allegedly misleading disclosures about teaser rates for adjustable mortgages.

Consumers Union claimed in its lawsuit that First Nationwide had failed to apply lower teaser rates for the full six months promised in brochures and sales pitches.

The group, which publishes the magazine Consumer Reports, sought a court order forcing the bank to stop charging higher-than-advertised rates and to return the interest differential to all affected First Nationwide mortgage holders.

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