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Nationstar Unauthorized Withdrawal of Double Mortgage Amount Class Action

The short complaint for this class action makes a simple allegation with little surrounding detail: that Nationstar Mortgage, LLC, doing business as Mr. Cooper, withdrew two months’ worth of mortgage payments, a total of around $3,000, from a borrower’s account without permission. It claims that Nationstar violated the Electronic Fund Transfer Act (EFTA).

The class for this action is all natural persons in Nevada whose mortgage servicing rights were transferred to Nationstar, and who had executed an electronic funds transfer authorization with their prior servicer and from whom Nationstar initiated electronic funds transfers that were inconsistent with the prior existing electronic funds transfer authorization executed with the prior servicer.

The complaint alleges, “On or about April 24, 2021, Mr. Cooper withdrew, without authorization, two additional mortgage payments out of Plaintiff’s Wells Fargo account totaling approximately $3,000.”

The plaintiff, Diane E. Thompson, had already made her April 2021 mortgage payment to the company on April 15, 2021, the complaint claims. It also claims that she “was not signed up for Mr. Cooper’s AutoPay.” Thompson, it says, disputed the withdrawals with Wells Fargo.

The complaint does not elaborate further on the circumstances—why Nationstar withdrew the money, why it was allowed to take the money out of Thompson’s account, or anything else. A clue is given in the class for the action: It appears Nationstar had taken over Thompson’s mortgage servicing, relying on the authorization to the previous servicer, but had withdrawn an excessive or disputed amount.

In setting forth the alleged violations of EFTA, the complaint quotes the law as saying that, “in the case of preauthorized transfers from a consumer’s account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Bureau, of the amount to be transferred and the scheduled date of the transfer.” It appears, then, that Thompson did not receive notice of the request for a double payment.

The complaint also claims violations of Nevada’s Deceptive Trade Act, asserting that the law “prohibits any false representation that is knowingly made in a transaction.” The complaint then alleges, “Nationstar’s false representations include, among other things, falsely representing that it had permission to withdraw money from [Thomspon’s] account.”

Another claim is negligence, the complaint says: Nationstar, it alleges, breached its duties by “failing to transfer or store their account information in a secure manner” and failing to assist customers “when they are victims of fraudulent or unauthorized transactions” or failing to tell them when their accounts were vulnerable to fraudulent and unauthorized transactions” and other such lack of timely and helpful response.

Additional counts include breach of contract and unjust enrichment.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Nationstar Unauthorized Withdrawal of Double Mortgage Amount Complaint

May 2, 2021

The short complaint for this class action makes a simple allegation with little surrounding detail: that Nationstar Mortgage, LLC, doing business as Mr. Cooper, withdrew two months’ worth of mortgage payments, a total of around $3,000, from a borrower’s account without permission. It claims that Nationstar violated the Electronic Fund Transfer Act (EFTA).

Nationstar Unauthorized Withdrawal of Double Mortgage Amount Complaint

Case Event History

Nationstar Unauthorized Withdrawal of Double Mortgage Amount Complaint

May 2, 2021

The short complaint for this class action makes a simple allegation with little surrounding detail: that Nationstar Mortgage, LLC, doing business as Mr. Cooper, withdrew two months’ worth of mortgage payments, a total of around $3,000, from a borrower’s account without permission. It claims that Nationstar violated the Electronic Fund Transfer Act (EFTA).

Nationstar Unauthorized Withdrawal of Double Mortgage Amount Complaint
Tags: EFTA, Mortgage-Related Unfair Practices