Sue Mortgage Company For Breach Of Contract

Sue Mortgage Company For Breach Of Contract – A mortgage holder with a delinquent home loan has settled a potential class action lawsuit with PHH Mortgage Co. after claiming the company raised property inspection fees.

Kirk Culver sued the company in 2020, saying in a proposed class action that PHH wrongfully charged him premiums for third-party property inspection costs for delinquent loans, Law360 reported.

Sue Mortgage Company For Breach Of Contract

According to the lawsuit, PHH contracted with a third party that used a computer system to inspect the properties every 20 to 30 days, and with each inspection, PHH increased Culver’s mortgage between $15 and $19.50.

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However, the actual cost of the inspection was “significantly less than what was charged to the plaintiff,” the class-action lawsuit says.

Although Culver sought to represent other mortgage borrowers sued in similar situations, his attorneys told Law360 that after discovery, they found “the claim is not ripe for classification.”

“That is why we have focused our attention on resolving claims and damages for our individual clients, and we are very pleased to be able to do so,” said Zachary Ludens of Zebersky Payne Shaw Lewenz LLP.

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Ludens said the agreement marks the end of the department’s lawsuit, as Culver will be the department’s representative.

In June, PHH tried to throw out the case, but a U.S. District Judge Paul G. Byron ruled in Culver’s favor and allowed his claims for breach of contract and violations of the Fair Debt Directive Practices Act, as well as claims for violations of the Act . Florida Consumer Collection Practices Act, Law360 reports.

In its motion to dismiss, PHH stated that it is not a debt collector and should not be subject to the law that Culver is suing. But Judge Byron cited PHH’s statement including the amount due, the $72.22 late fee that “may be charged” and the clear statement that the letter was from a “debt collector” as evidence that it acted. as a debt collector.

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“If the instant communication, which includes the defendant as a debt collector attempting to collect, a potential late payment of $72.22, and the full amount due, contains clear language communication that does not constitute debt collection communication, it is difficult to see what would happen. which. .”

Last September, PHH settled a $12.6 million class-action lawsuit against homeowners who alleged that what the company called “processing fees” caused customers to pay their home loans online or over the phone — fees ranging from $17.50 to $7.50 — . violated the Federal Fair Debt Collection Practices Act and violated their mortgage agreement.

Have you ever taken out a loan from PHH? Tell us about your experience in the comments section!

Civil Litigation I Fraud Litigation I Breach Of Contract

Culvert is represented by Jordan A. Shaw and Zachary D. Ludens of Zebersky Payne Shaw Lewenz LLP, J. Matthew Stephens of Methvin Terrell Yancey Stephens & Miller PC and Darren R. Newhart of Newhart Legal PA.

The PHH Inspection Fee Class Action is Culver v. PHH Mortgage Corp., case number 6:20-cv-02292. case, in the United States District Court for the Middle District of Florida.

Note: Top Class Action is not a settlement administrator or law firm. Top Class Actions is a legal news source covering class actions, class action lawsuits, drug injury claims and product liability claims. Class Action Superior does not process claims and we cannot advise the status of a class action settlement. Contact your settlement administrator or attorney for any updates on your claim status, claim forms or questions about expected mail payments.

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