Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, February 26, 1994                   TAG: 9402260043
SECTION: BUSINESS                    PAGE: A6   EDITION: METRO 
SOURCE: Sandra Brown Kelly Staff Writer
DATELINE:                                 LENGTH: Medium

FIRST UNION OFFERS TO SETTLE LAWSUIT

The suit was filed in May 1991 in U.S. District Court in Minnesota by Karin E. and David M. Danforth Jr. and others. A final hearing on the proposed settlement will be held May 13.

The bank said it "strongly denies" doing anything wrong but settled to avoid further litigation costs.

Notices of the suit status and the May hearing have been mailed to mortgage holders. The notice explains that people who had a mortgage with First Union on Dec. 31 and still have it don't have to do anything to get a refund.

The settlement includes $420,000 set aside for current mortgage holders and $180,000 for refunds to people who had mortgages with the company between Jan. 1, 1983, and Dec. 31, 1993, but no longer have the mortgages.

First Union also will pay $380,000 in lawyers' fees, said spokesman David Scanzoni.

He said 362,000 accounts are affected and refunds are expected to be from $1 to $2 per account.

Mortgages involved include those made by First Union and accounts acquired by First Union from Roanoke-based Dominion Bankshares Corp., and from South Carolina Federal Savings Bank, Decatur Federal Savings & Loan Association, Meritor Savings Bank, First American Bank, Florida National Bank, Georgia Federal Bank, Southeast Bank, Southeast Bank of West Florida, Flagler Federal Savings and Loan Association, Security First Federal Savings and Loan Association, TARI Inc. and Citizens Union Bank.

Previous mortgage holders can call attorneys for the plaintiffs, Charles S. Zimmerman and Barry G. Read, at (612) 335-2555. Requests for claim forms should be sent to First Union Mortgage, P.O. Box 29558, Raleigh, N.C. 27626-0558.