$7 Million FDCPA Class Action Settlement

Maginnis Howard attorneys, Edward H. MaginnisAsa C. Edwards and Karl S. Gwaltney, with co-counsel from Whitfield Bryson LLP attorneys, Scott C. Harris and Patrick M. Wallace, represented a group of homeowners who reached a $7 million settlement with mortgage servicing company, Seterus Inc.

Thousands of homeowners received threatening “final notice” letters from Seterus Inc between September 2012 and February 2019. Collectors, in order to expedite loan repayment, pressured homeowners who were 45 days past due on mortgage bills. The company threatened homeowners with accelerated payments and foreclosure despite the fact that the statements violated the loan agreement.

Consequently, 29 plaintiffs from a dozen states brought cases against the mortgage servicer. The plaintiffs maintain the company violated the Fair Debt Collection Practice Act (FDCPA) and the North Carolina Debt Collection Act (NCDCA). Although the parties reached a settlement, Seterus will not admit wrongdoing.

Mr. Cooper Group (formerly known as Nationstar) acquired Seterus Inc in 2019, but the settlement remains available to any affected customers. The $7 Million settlement will require final approval in the courtsbefore funds are dispersed.

If you have any questions about this settlement, you can contact our firm by phone (919) 526-0450 or by email at info@MaginnisHoward.com