Seterus Class Action Lawsuit

Maginnis Howard has uncovered potential violations of state and federal consumer protection laws by mortgage servicing giant Seterus, Inc. Seterus is a nationwide company that represents Fannie Mae mortgages. Currently, our firm has pending class actions against Seterus in North Carolina, Michigan, New York, New Jersey, Kansas, and Missouri. Seterus class action representatives may be entitled to an award from $1,000 to $15,000 in addition to the general payout. Additionally, Seterus class action representatives are not responsible for paying costs, attorneys’ fees, or any other expenditures.

The “Final Account Letter”

Seterus generally sends the unlawful letter, called a “Final Account Letter”, to those who fall behind on mortgage payments. An example of what Seterus’ Final Account Letter looks like is below:

The Final Account Letter states that Seterus “will accelerate the maturity of your loan and upon such acceleration the ENTIRE indebtedness of the loan, including principal, accrued interest, and all other sums due thereunder, shall at once and without further notice, become immediately due and owing.” The letter also says that “If you send only a partial payment, the loan still will be in default and we may keep the payment and still will accelerate the maturity date.”

The statement claims that unless a timely and full payment on the homeowner’s mortgage, then Seterus will accelerate the loan. In other words, the full amount of the mortgage is due and unless paid, they will start a foreclosure proceeding.

We believe that these statements made by Seterus are false, misleading and designed to frighten and intimidate consumers into paying. The threat of impending foreclosure is unlawful if it is not true. In a recent decision in North Carolina, the Honorable L. Patrick Auld rejected the arguments made by Seterus as to why their Final Account Letter is not in violation of the law saying that “[i]n sum, none of [Seterus’s] arguments warrant dismissal of Plaintiff’s [] claim.”

We can help.

Interested in joining the class action? Are you experiencing other debt collection violations? Reach out to us at info@maginnishoward.com, at (919) 526-0450 or through our contact page for a free confidential consultation.