Industry News

Bankrate to pay $3 milllion to settle lawsuit

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Bankrate Inc. has agreed to pay a former client $3 million to settle allegations the company did little to prevent lenders that advertised on its Web site from engaging in bait-and-switch tactics. Bankrate officials say they admit no "fault or liability of any kind" in the settlement with American Interbanc LLC, a former -- and apparently future -- Bankrate customer. The settlement contains "certain terms and conditions that permit American Interbanc to advertise on Bankrate.com," Bankrate said in a press release. Bankrate.com lets consumers compare mortgage rates offered by dozens of lenders. Advertisers on the site pay to have clickable hyperlinks embedded in rate tables that are custom-generated by visitors' queries. American Interbanc originally sued several lenders who advertised on Bankrate.com, claiming they engaged in false advertising by not granting loans at the rates promised on the site. Bankrate was named as a defendant in November 2002 after it refused to renew Ameri...