Maginnis Howard Agrees to Settle $7M Class Action with Seterus Inc.

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Maginnis Howard attorneys Edward H. Maginnis, Asa C. Edwards and Karl S. Gwaltney, agreed this week to settle a class action lawsuit with the mortgage servicer, Seterus Inc.

The settlement is a result of three years of litigation against Seterus for violating debt collection laws.

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 even though the statements conflicted with original loan agreements.

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). However, Seterus will not admit wrongdoing.

Our team worked alongside attorneys Scott C. Harris and Patrick M. Wallace of Whitfield Bryson, LLP. Both firms have dedicated their efforts to the 46,000 affected homeowners.

At this time, Maginnis Howard is awaiting district court approval on the $7M Class Action suit. In the event that the settlement is approved, Seterus consumer payouts will be based on the state of residence.