Mortgage Convenience Fees Lawsuit in California

California Class Action Lawyers Protecting Consumer Rights

Are you a homeowner in California who has been charged convenience fees for telephone and IVR mortgage payments? You may be eligible to join a class action lawsuit aimed at recovering these fees and holding mortgage servicers accountable.

We are only interested in claims that arose in CA.

About the Lawsuit

This lawsuit addresses the issue of convenience fees charged by mortgage servicers for payments made online or over the phone. Plaintiffs allege that mortgage servicers improperly charged and collected convenience fees for telephone and IVR mortgage payments, violating California’s Rosenthal Fair Debt Collections Act and Unfair Competition Law (UCL), and breaching the mortgage agreement. Many homeowners have been subjected to these fees, which can add up significantly over time.

The Fair Debt Collection Practices Act (“FDCPA”) prohibits any unfair practices and defines this term to encompass “the collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.” (15 U.S.C. 1692f(1)).

Given that the convenience fee lacks authorization in the underlying contract, and the state does not expressly permit such fees, demanding the fee constitutes a violation. Therefore, even if the collector refrains from collecting the fee, requesting payment in the letter still violates the law, as it misleads even the least sophisticated consumer.

Our firm is committed to fighting for and protecting consumer rights, affirming the trust placed in us by the many homeowners we represent. Our legal team is committed to fighting for your rights and ensuring that mortgage servicers comply with state and federal laws.

Eligibility

You may be eligible to join the lawsuit if:

  • You are a homeowner in California.
  • You have been charged convenience fees for making mortgage payments online or over the phone.
  • These fees were not disclosed or were excessive.

To determine your eligibility, please fill out our Contact Us Form on this webpage. Our legal team will review your information and contact you for a free consultation to discuss your case.

If you have been charged a convenience fee while paying your mortgage online or over the phone, it is important to take action and join the Mortgage Convenience Fees Class Action Lawsuit. By joining, you can seek compensation for any losses you may have incurred due to these fees. The settlement not only provides financial compensation to the class members but also ensures lasting change, demonstrating the power of collective action and the justice achievable through the legal system.

Don’t wait—contact Potter Handy LLP today to learn more about your rights and how to join the class action lawsuit. Our experienced lawyers are dedicated to fighting for consumer rights and holding companies accountable. Don’t let mortgage servicers get away with unfair practices—join the fight for justice now.

How to Join

  1. Fill Out the Contact Us Form: Provide your contact information and details about the convenience fees you have incurred.
  2. Consultation: Our legal team will review your information and contact you for a free consultation to discuss your case.
  3. Join the Lawsuit: If eligible, you will be added to the class action lawsuit, and our attorneys will handle the rest.

Frequently Asked Questions (FAQs)

What are “Convenience Fees”?

Typically, merchants levy “convenience fees” when customers opt to pay for goods or services using credit cards or alternative non-cash payment methods. Often, these fees serve to dissuade customers from using credit cards.

For instance, in the 1980s, many gas stations began offering discounts to customers paying in cash, effectively charging convenience fees to those using credit cards. Similarly, online ticket brokers like Ticketmaster or Ticket Tomato tack on convenience fees to event ticket prices.

Although many jurisdictions permit such fees, certain mortgage agreements explicitly prohibit the imposition of “convenience” or pay-by-phone fees. Despite this, homeowners have voiced grievances over mortgage loan servicers charging as much as $5.00 for online payments and up to $20.00 for phone payments.

Why do businesses impose convenience and pay-by-phone fees?
 In certain instances, these fees are implemented to cover the expenses incurred by the businesses themselves. Processing certain credit transactions involves costs such as hardware, software, and labor. However, these costs are typically lower than what businesses like banks and mortgage companies claim.

For instance, a mortgage loan servicer currently facing a class action lawsuit in California charges a $15 “Pay-to-Pay” fee for customers making payments over the phone. The lawsuit alleges that the actual processing costs for phone payments incurred by the defendant are only a few cents, with the remainder being retained by the company. Additionally, while such expenses can be legitimate tax deductions for businesses, they generally do not apply to individuals.

How are Mortgage Companies Violating the Law?

In contravention of legal standards, mortgage companies are engaging in violations primarily by inflating charges beyond the legitimate costs associated with payment processing, as stipulated in standard mortgage agreements. This practice not only breaches the Fair Debt Collection Practices Act and the Rosenthal Act but also contravenes the terms of their own contractual obligations.

Customers should be vigilant regarding the emergence of spurious fees within mortgage agreements. Overly high convenience fees could signal overcharges in other areas. Many customers may overlook the fine print of their agreements or become overwhelmed by the intricacies of home purchasing and mortgage acquisition, resulting in excessive fee payments.

Some mortgage lenders may exploit customers’ lack of understanding of the mortgage process by imposing excessive fees. These inflated convenience fees may accompany other misleading or unnecessary charges such as application fees, underwriting fees, mortgage rate lock fees, loan processing fees, and broker rebates. Undisclosed or concealed fees represent one of the tactics through which lenders might exploit borrowers.

What is a class action lawsuit?

A class action lawsuit allows a group of people with similar complaints to file a single lawsuit against a defendant. This can make it easier to fight large corporations and can lead to more significant settlements for the plaintiffs.

Is there a cost to join the lawsuit?

No, there are no upfront costs. Our attorneys work on a contingency fee basis, meaning they only get paid if we win the case.

How long will the process take?

The duration of a class action lawsuit can vary. Our legal team will keep you informed throughout the process and work diligently to resolve the case as quickly as possible.

What can I recover?

If the lawsuit is successful, you may be entitled to recover the convenience fees you paid, as well as possible additional damages for any harm caused by the mortgage servicer’s practices.

Contact Us: Join the Mortgage Convenience Fees Lawsuit in California

If you have been charged a convenience fee while paying your mortgage online or over the phone, you could be eligible to join a Mortgage Convenience Fees Class Action Lawsuit. Taking action promptly is essential. By participating, you can reclaim the convenience fees you’ve paid, along with potential additional damages resulting from the practices of the mortgage servicer.

Don’t wait—reach out to Potter Handy LLP today to learn about your rights and how to join the class action lawsuit. Our experienced lawyers are committed to fighting for consumer rights and holding companies accountable. Don’t let mortgage servicers get away with unfair practices—join the fight for justice now. Free Consultations 24/7. No out-of-pocket expenses.