Convenience Fees and Your Mortgage

Most people have ordered something online in their lifetime and have been charged convenience fees. These fees, while in most-cases are legal, can be aggravating and annoying for the consumer.

Convenience fees, better known as pay by phone fees, online fees, processing fees and extra charges are mainly charged by a merchant when a consumer orders something online while using a credit or debit card. If you purchase sports tickets online, you will be charged a certain fee that will be added on top of the ticket prices. This, however, is allowed by law, because you’ve agreed to pay them in a contract or terms and conditions.

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.

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 and discuss your individual situation. Feel free to give us a call at 919-526-0450 or email info@maginnislaw.com. Make sure you keep all documents and receipts regarding your mortgage and past mortgage payments to help assist us in evaluating your case.

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