Rate Accuses LitFinancial of Using Its Name to Poach Customers

Mortgage lender Guaranteed Rate Inc. sued Lit Financial Corp., alleging the mortgage broker sent misleading advertisements that falsely suggested a business relationship between the two companies.

LitFinancial violated the Lanham Act and Michigan’s trademark laws through a “predatory marketing scheme” using Rate’s name and customer relationships, acording to Rate’s complaint filed Thursday in the US District Court for the Eastern District of Michigan. It alleges LitFinancial sent mailers and texts omitting any LitFinancial reference but prominently featuring “Guaranteed Rate, Inc.,” targeting recipients known to be Rate customers based on public records.

The advertisements falsely implied sponsorship by Rate and urged ...