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Nationstar Unauthorized Withdrawal of Two Mortgage Payments EFTA Class Action

This class action alleges that Nationstar Mortgage, LLC, which does business as Mr. Cooper, took two months’ worth of mortgage payments out of a customer account, even though he had already made his monthly mortgage payment. The complaint provides very little associated detail but bring suit under 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 had an electronic funds transfer authorization with their earlier servicer, and from whom Nationstar made electronic funds transfers that were inconsistent with the electronic funds transfer authorization in effect with the earlier servicer.

The plaintiff in this case is Brett Padalecki.

The complaint provides little background to what appears to be a dispute in this case. It simply states, “In or about April 2012, Mr. Cooper withdrew, without authorization, two additional mortgage payments out of [Padalecki’s] bank account. [Padalecki] had already made his monthly mortgage payment to Mr. Cooper.”

Padalecki, the complaint alleges, had not executed an AutoPay agreement with Nationstar or Mr. Cooper.

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had taken over Padalecki’s mortgage servicing, relying on the authorization to the previous servicer, but had withdrawn an excessive or disputed amount.

This, the complaint alleges, is a violation of the EFTA. The complaint quotes the law in alleging 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…” According to the complaint, Nationstar did not do this.

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 [Padalecki’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 lacked other kinds 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 Two Mortgage Payments EFTA Complaint

May 14, 2021

This class action alleges that Nationstar Mortgage, LLC, which does business as Mr. Cooper, took two months’ worth of mortgage payments out of a customer account, even though he had already made his monthly mortgage payment. The complaint provides very little associated detail but bring suit under the Electronic Fund Transfer Act (EFTA).

Nationstar Unauthorized Withdrawal of Two Mortgage Payments EFTA Complaint

Case Event History

Nationstar Unauthorized Withdrawal of Two Mortgage Payments EFTA Complaint

May 14, 2021

This class action alleges that Nationstar Mortgage, LLC, which does business as Mr. Cooper, took two months’ worth of mortgage payments out of a customer account, even though he had already made his monthly mortgage payment. The complaint provides very little associated detail but bring suit under the Electronic Fund Transfer Act (EFTA).

Nationstar Unauthorized Withdrawal of Two Mortgage Payments EFTA Complaint
Tags: EFTA, Mortgage-Related Unfair Practices