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Nationstar Seizing of Multiple Mortgage Payments Florida Class Action

If you permit your mortgage servicer to withdraw the payment on your mortgage from your bank account each month, is the servicer permitted to withdraw three such payments at once, without notice to you, if you’re in default? The complaint for this class action alleges that Nationstar Mortgage, LLC has been making excessive withdrawals from bank accounts, without notice or permission, leaving borrowers with overdrafts and without funds to pay their other bills. The complaint alleges Nationstar has violated the Fair Debt Collection Practices Act (FDCPA), the Florida Consumer Collection Practices Act (FCCPA), and the Electronic Fund Transfer Act (EFTA).

A class and a subclass have been defined for this action:

  • The Florida Class is all consumers in Florida whose mortgages were serviced by Nationstar who had more than a single monthly payment withdrawn from their accounts, within the applicable statute of limitations.
  • The FDCPA Subclass is all consumers in Florida whose mortgage servicing was transferred to Nationstar while in a state of default, who had funds that equaled more than one monthly payment withdraw from their accounts during the applicable statutes of limitations.

The complaint asserts, “When Nationstar acquires the servicing rights to a particular loan portfolio, a large percentage of the loans contained therein are delinquent as of the effective date of the acquisition.”

Some of the borrowers give Nationstar authorization to withdraw money from their accounts once a month to make their monthly mortgage payment. These withdrawals may be initiated via an Automatic Clearing House (ACH) debit transaction with the borrower’s financial institution.

In these transactions, Nationstar is the originator, beginning the transaction through its Originating Depository Financial Institution (ODFI). The borrowers are considered the Receivers of the transactions, the requests for which are received by their Receiving Depository Financial Institution (RDFI). The complaint alleges that “in 2021, Nationstar submitted hundreds of thousands of improper ACH debit requests.”

Among them were three debit requests to the financial institution of the plaintiff in this case, Shuron Miller. The requests totaled $3,060.90, an amount equivalent to three months’ worth of mortgage payments. The complaint says, “Upon information and belief, Plaintiff Miller never authorized Nationstar to initiate ACH requests to pull money from her bank account.” Miller claims she certainly did not authorize the removal of three monthly payments in one month.

Miller was left without funds for pay for other expenses while the matter was investigated. The complaint alleges, “Upon information and belief, tens of thousands of similarly situation borrowers also experienced unauthorized ACH debits on their accounts[,] resulting in, inter alia, lost interest, loss of purchasing power, and overdraft fees.”

In making these withdrawals, the complaint claims, Nationstar was collection mortgage debt that it was not authorized to collect.

In addition to violations of the FDCPA, FCCPA, and EFTA, the complaint alleges negligence and conversion.

Article Type: Lawsuit
Topic: Loans

Most Recent Case Event

Nationstar Seizing of Multiple Mortgage Payments Florida Complaint

June 3, 2021

If you permit your mortgage servicer to withdraw the payment on your mortgage from your bank account each month, is the servicer permitted to withdraw three such payments at once, without notice to you, if you’re in default? The complaint for this class action alleges that Nationstar Mortgage, LLC has been making excessive withdrawals from bank accounts, without notice or permission, leaving borrowers with overdrafts and without funds to pay their other bills. The complaint alleges Nationstar has violated the Fair Debt Collection Practices Act (FDCPA), the Florida Consumer Collection Practices Act (FCCPA), and the Electronic Fund Transfer Act (EFTA).

Nationstar Seizing of Multiple Mortgage Payments Florida Complaint

Case Event History

Nationstar Seizing of Multiple Mortgage Payments Florida Complaint

June 3, 2021

If you permit your mortgage servicer to withdraw the payment on your mortgage from your bank account each month, is the servicer permitted to withdraw three such payments at once, without notice to you, if you’re in default? The complaint for this class action alleges that Nationstar Mortgage, LLC has been making excessive withdrawals from bank accounts, without notice or permission, leaving borrowers with overdrafts and without funds to pay their other bills. The complaint alleges Nationstar has violated the Fair Debt Collection Practices Act (FDCPA), the Florida Consumer Collection Practices Act (FCCPA), and the Electronic Fund Transfer Act (EFTA).

Nationstar Seizing of Multiple Mortgage Payments Florida Complaint
Tags: EFTA, FDCPA, Mortgage-Related Unfair Practices, Servicing Your Mortgage, Unlawful Debt Collection