Nationstar Online, Telephone “Processing Fees” Florida Class Action

Nationstar Mortgage, LLC now does business under the name of Mr. Cooper. The complaint for this class action alleges that when Nationstar services mortgages, it charges “illegal and improper” processing fees when payments on mortgages are made over the phone. The law at issue is the Florida Consumer Collection Practices Act (FCCPA).

Plaintiff James Mullen entered into a mortgage agreement on March 1, 2007 to buy his home in Delray Beach, Florida. The mortgage is serviced by Nationstar. The mortgage agreement was attached to the original complaint as Exhibit A.

According to the complaint, the mortgage “does not expressly provide for charging fees for making payments online or over the phone. Furthermore, such processing fees are not expressly authorized by Florida state law.”

The complaint alleges that where neither the contract creating a debt nor the applicable laws expressly authorize the charging of processing fees, “such fees have been held unlawful because they violate the FCCPA when the debt collector retains any portion of the fee instead of passing the entire fee through to the payment processor.”

Nevertheless, Nationstar has twice charged Mullen processing fees. On August 5, 2016, he was charged a $9.95 processing fee; and on July 17, 2019 he was charged a $19.00 processing fee. On Mullen’s mortgage statements, the fee is listed as an “E Pay Fee.”

The first count in the complaint is the FCCPA. The complaint quotes the law as saying, “In collecting consumer debts, no person shall [c]laim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate, or assert the existence of some other legal right when such person knows that the right does not exist.” The complaint says that this prohibits the addition of processing fees.

In the second count, the complaint claims that the fees were a breach of contract because they are not provided for in the mortgage agreement.

Finally, the complaint claims that Nationstar has unjustly enriched itself with the fees.

The complaint has proposed no overall class but three subclasses for this action: an FCCPA Subclass, a Breach of Contract Subclass, and an Unjust Enrichment Subclass. All three have the same definition: All individuals in the state of Florida who, during the statute of limitations period, paid Nationstar a processing fee for a payment made of the telephone or online in connection with a residential mortgage loan owned or serviced by Nationstar.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Nationstar Online, Telephone “Processing Fees” Florida Complaint

February 4, 2020

Nationstar Mortgage, LLC now does business under the name of Mr. Cooper. The complaint for this class action alleges that when Nationstar services mortgages, it charges “illegal and improper” processing fees when payments on mortgages are made over the phone. The law at issue is the Florida Consumer Collection Practices Act (FCCPA).

nationstar_mr._cooper_processing_fee_compl.pdf

Case Event History

Nationstar Online, Telephone “Processing Fees” Florida Complaint

February 4, 2020

Nationstar Mortgage, LLC now does business under the name of Mr. Cooper. The complaint for this class action alleges that when Nationstar services mortgages, it charges “illegal and improper” processing fees when payments on mortgages are made over the phone. The law at issue is the Florida Consumer Collection Practices Act (FCCPA).

nationstar_mr._cooper_processing_fee_compl.pdf
Tags: Additional charges in breach of contract, Mortgage-Related Unfair Practices, Your Bank