A quick update to the Fidelity settlement story that RE-Insider posted last week:
Fidelity has now also reached a settlement with California district attorneys over unfair competition allegations regarding its TransactionPoint software system.
San Diego County District Attorney Bonnie Dumanis announced that Fidelity National will pay more than $870,000 as part of a settlement with 3 California district attorneys in an unfair competition lawsuit.
The San Diego District Attorney’s Office will receive more than $300,000 from the settlement. San Diego County was co-counsel with the district attorneys of Ventura and Los Angeles Counties in this civil consumer protection judgment, filed in Ventura Superior Court and entered last week by Superior Court Judge Frederick Bysshe.
In the civil complaint filed under California’s Unfair Competition Law, the district attorneys allege that Fidelity operated a TransactionPoint for real estate brokers and other settlement service providers in California that allegedly facilitated unlawful secret payments to the brokers for the referral of business to title insurers and other service providers.
“Consumers deserve the benefits of competition when they buy homes and choose service providers and these secret payments in exchange for referrals violated expectation,” Dumanis said. “We bring enforcement actions like this to ensure that free and fair competition — and not an undisclosed referral payment — determines who provides each real estate settlement service.”