Fast-Growing Lake Michigan Credit Union Holds Loan Officer’s Salary Hostage


DETROIT, September 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 the public interest central Clarkson Law Firm, PC, Brad Cook and Hannah Ritzenhein detailed allegations against LMCU of exploiting current and former loan officers by withholding loan officer commissions unless they perform unpaid work outside of their duties. The couple allege that up to half of their work was done without pay while performing after-sales administrative tasks reserved for hourly-paid loan processors.

According to the lawsuit, “LMCU’s illegal pay system works like this: (1) LMCU entices loan officers into their business under a 100% commission-based compensation structure…; (2) LMCU then performs additional duties and responsibilities similar to those of a loan officer after the fact, which occupy almost 50% of the loan officer’s time and energy; and (3) LMCU only pays $0 to loan officers for nearly 50% of their work.”

Former employees see it as irony from michigan fastest growing credit union professing family values ​​as its recipe for success: “Defendant misrepresents the company’s values ​​of support, respect and community. Ironically, Defendant states: ‘Beyond the numbers, numbers and calculations, when you come to work for LMCU, you are part of a family. They are a family that values ​​your efforts and treats you with respect, dignity and fairness.” Defendant is marketing a supportive work environment, when in reality, Defendant is exploiting the time, energy of loan officers and, ultimately denies them their just compensation.”

Cook and Ritzenhein are calling for unpaid wages and structural changes to the credit union’s compensation system so other loan officers get the money and job standards they deserve.

The matter is pending before the Honorable Denise Page Hood at 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]

SOURCE Clarkson Law Firm, PC

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