LoanCare Mortgage Online or Phone Payment Fees Florida Class Action

The complaint for this class action alleges that mortgage servicer LoanCare, LLC charges mortgage holders an additional fee when they pay their monthly mortgage bill online or over the telephone. The complaint claims that these fees are not legal for more than one reason.

LoanCare services high-risk, high-interest residential mortgages. Borrowers who are considered to be high risk customers may not have excess funds and may have to wait until the last minute to pay their mortgages and may therefore need to make payments over the Internet or over the telephone. In those circumstances, the complaint alleges that LoanCare charges these customers an unauthorized processing fee.

Unfortunately, this is a practice that has become widespread. The Consumer Financial Protection Bureau (CFPB) issued Compliance Bulletin 2017-01 which warns lenders and mortgage servicers to “review applicable laws to determine whether they may charge” processing fees and to “[r]eview underlying debt agreements to determine whether such fees are authorized by the contract.”

Plaintiff Donna Alvarez owns a house in Riverview, Florida with a mortgage serviced by LoanCare.

The complaint alleges, “LoanCare has a uniform practice of charging illegal and improper ‘processing fees’ when payments on the mortgage are made over the phone or online…”

LoanCare has charged such fees to Alvarez, including in May 2018 and November 2019, even though neither her mortgage contract nor Florida law permits the charging of such fees.

Also, the complaint alleges that “LoanCare does not pass the entire fee on to a payment processor and instead retains a considerable portion thereof…. It is well known in the payment processing industry that third-party processors such as Western Union charge a small fraction of the amounts LoanCare Charges as ‘processing fees.’”

The complaint alleges breach of contract, unjust enrichment, and violation of the Florida Consumer Collection Practices Act and Florida Deceptive and Unfair Trade Practices Act.

The practice of charging such unauthorized fees has become widespread. The complaint alleges, “Indeed, some mortgage servicers have settled similar claims on a nationwide class action basis…”

Four classes have been defined for this action: the FCCPA Class, the FDUTPA Class, the Breach of Contract Class, and the Unjust Enrichment Class. All four classes have the same definition:

All individuals in Florida who, during the applicable limitations period, paid a processing fee to LoanCare for making a payment over the phone or online in connection with a residential mortgage owned or serviced by LoanCare.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

LoanCare Mortgage Online or Phone Payment Fees Florida Complaint

May 1, 2020

The complaint for this class action alleges that mortgage servicer LoanCare, LLC charges mortgage holders an additional fee when they pay their monthly mortgage bill online or over the telephone. The complaint claims that these fees are not legal for more than one reason.

LoanCare Mortgage Online or Phone Payment Fees Florida Complaint

Case Event History

LoanCare Mortgage Online or Phone Payment Fees Florida Complaint

May 1, 2020

The complaint for this class action alleges that mortgage servicer LoanCare, LLC charges mortgage holders an additional fee when they pay their monthly mortgage bill online or over the telephone. The complaint claims that these fees are not legal for more than one reason.

LoanCare Mortgage Online or Phone Payment Fees Florida Complaint
Tags: Additional charges in breach of contract, Mortgage-Related Unfair Practices, Servicing Your Mortgage, Unlawful Fees