Ajax 2016 Trust Maryland Foreclosure Is Consumer Debt Collection, Class Action Claims

In January 2008, Plaintiffs Wyatt Duncan and Tykecia McCormick-Duncan obtained a mortgage loan of $100,000 from Lehman Brothers Bank for a home in Maryland. Unfortunately, in February 2015, they allegedly went into default.

The complaint proposes two class for this action. Class 1 is all current and former obligors on notes secured by real property in Maryland against whom a collection lawsuit or foreclosure was initiated or maintained by the Ajax 2016 Trust, between November 27, 2016 and November 27, 2017. Class 2 is all current and former obligors on notes secured by real property in Maryland against whom a collection lawsuit or foreclosure was initiated or maintained by the Ajax 2016 Trust, between November 27, 2014 and November 27, 2017.

When the Duncans went into default, attorneys of BWW Law Group were assigned as “substitute trustees” and in May 2016 they initiated a foreclosure action on the Duncans’ home. In January 2017, they held a public auction and sold the home to Fawn Way Builders, for $234,000.

By then, the note and Deed of Trust associated with the mortgage had been reassigned several times. On November 14, 2016, they were reassigned to the US Bank National Association as Indenture Trustee on behalf of Ajax Mortgage Loan Trust 2016-C, Mortgage-Backed Notes, Series 2016-C.

The complaint makes a simple claim but one that could have far-reaching consequences. It claims that the Duncans’ mortgage was a loan for personal, family, or household purposes, making it a consumer loan; and that, since the loan was in default, with this reassignment, the Ajax Trust became a collection agency and subject to the Maryland collection agency licensing laws.

The complaint further alleges that Ajax must be licensed as a debt collector in Maryland in order to take action on the defaulted loan; and that, since Ajax is not so licensed, every civil action and or foreclosure it has pursued in Maryland is an unfair and deceptive trade practice under the Maryland Consumer Debt Collection Act.

The complaint asks for declarative and injunctive judgments on these allegations, declaring that Ajax’s actions were illegal and that all judgments entered for the benefit of the Ajax 2016 trust during the class period are void. It also claims that the Ajax 2016 Trust violated the federal Fair Debt Collection Practices Act (FDCPA), because its attempts to collect debts in Maryland without a Maryland license constitute false and misleading representations.

The complaint also alleges other violations of Maryland state laws and claims that the company engaged in unjust enrichment.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Ajax 2016 Trust Maryland Foreclosure Is Consumer Debt Collection Complaint

November 27, 2017

In January 2008, Plaintiffs Wyatt Duncan and Tykecia McCormick-Duncan obtained a mortgage loan for a home in Maryland. Unfortunately, in February 2015, they allegedly went into default, and their home was eventually sold at auction, after action by the then-assignee of the note, the Ajax 2016 Trust. The complaint makes a simple claim but one that could have far-reaching consequences: that the Duncans’ mortgage was a consumer loan, and that, since the loan was in default, the Ajax Trust was a collection agency and subject to the Maryland collection agency licensing laws. Since it is not licensed, the complaint claims, its actions in foreclosures and other types of collections should be void. 

us_bank_national_debt_collection_lawsuit.pdf

Case Event History

Ajax 2016 Trust Maryland Foreclosure Is Consumer Debt Collection Complaint

November 27, 2017

In January 2008, Plaintiffs Wyatt Duncan and Tykecia McCormick-Duncan obtained a mortgage loan for a home in Maryland. Unfortunately, in February 2015, they allegedly went into default, and their home was eventually sold at auction, after action by the then-assignee of the note, the Ajax 2016 Trust. The complaint makes a simple claim but one that could have far-reaching consequences: that the Duncans’ mortgage was a consumer loan, and that, since the loan was in default, the Ajax Trust was a collection agency and subject to the Maryland collection agency licensing laws. Since it is not licensed, the complaint claims, its actions in foreclosures and other types of collections should be void. 

us_bank_national_debt_collection_lawsuit.pdf
Tags: FDCPA, Foreclosure, Unlawful Practices, Your Bank