Your Mortgage and Potential Convenience Fees

By now, most Americans have ordered something online, and subsequently paid the convenience fees that go along with it. These fees, while in most-cases are legal, can be aggravating and annoying for the consumer. Pay by phone fees, online fees, processing fees, speedpay fees and extra charges. Online merchants charge convenience fees in many forms. However, in many cases these fees are legal under the terms and conditions of online merchant platforms.

The terms of many mortgage agreements, however, do not allow for the charging of “convenience,” or pay-by-phone fees. Despite this, homeowners have complained that their mortgage loan servicers are charging as much as $5.00 for online payments and up to $20.00 for over the phone payments. By adding on extra fees, these companies are violating the Fair Debt Collection Practices Act, the North Carolina Unfair Debt Collection Act and their own contractual agreement.

In 2019, Asa Edwards resolved a consumer protection lawsuit against a mortgage servicer for $125,000.00.  The mortgage servicer had inaccurately charged the client with various inappropriate fees and charges and refused to respond to the pleas from our client that their records were inaccurate. The matter involved claims under the Fair Credit Reporting Act and North Carolina Unfair Debt Collection Act.

Similarly, in 2017, Ed Maginnis, Asa Edwards, and Karl Gwaltney resolved a case for $99,000 against a mortgage servicer on behalf of a North Carolina husband and wife. Just one day before jury selection, our attorneys reached the settlement. Our clients alleged that the mortgage servicer unlawfully threatened foreclosure, charged improper fees, and violated the client’s deed of trust.

We can help.

If you or someone you know has been charged a convenience fee on your mortgage payment, or you believe that you have been in the past, we want to hear from you. Feel free to give us a call at 919-526-0450 or email info@maginnislaw.com. Otherwise, you can reach us through our contact page. Be sure to keep all documents regarding your mortgage and mortgage payments so we can accurately assess your case.

Maginnis Howard offers personal injury, employee rights, estate planning and business litigation attorneys as well. We offer free consultations relating to most of our other practice areas, but please call or email for more details.