PennyMac Loan Services Excessive Debt Collection Calls Massachusetts Class Action

Debt collectors must obey certain laws and requirements when they attempt to collect debts from consumers. The complaint for this class action alleges that PennyMac Loan Services, LLC does not obey these laws and requirements in its attempts to collect from consumers who are late on their mortgage payments. It brings suit not under federal debt collection laws but under Massachusetts state consumer protection laws.

The class for this action is all consumers living in Massachusetts who, between March 13, 2016 and March 13, 2020, received more than two telephone calls in a seven-day period, to their homes, cell phones, or other provided numbers, about a debt they owed to PennyMac.

PennyMac claims to be a “top national mortgage lender” having more than 15 million customers.

Plaintiff Walter Rozanski allegedly owes a debt to PennyMac related to a home mortgage. When the debt was allegedly more than thirty days past due, PennyMac attempted to collect it by placing repeated calls to Rozanski’s home telephone number, beginning in or around April 2019.

The complaint alleges that PennyMac made more than two calls in a seven-day period, “often placing four calls a week” to Rozanski.

This is against Massachusetts state law. The complaint quotes the Massachusetts Attorney General as saying it is an “unfair or deceptive act or practice for a creditor” to “initiate a communication with any debtor via telephone, whether in person or via text messaging or recorded audio message, in excess of two such communications in each seven-day period to either the debtor’s residence, cellular telephone, or other telephone number provided by the debtor as his or her personal telephone number, for each debt…”

The complaint claims that Rozanski is far from the only person who has received multiple debt-collection calls from PennyMac. It alleges that the Better Business Bureau has received 463 complaints from borrowers about PennyMac, some complaining they were “harassed almost 2-3 times a week” by calls from the company or that they “have been harassed [and] talked down to” by the company or that the company “places numerous calls when you are late on your mortgage payment. They hand deliver letters to your front door to collect payment.”

The complaint provides two links to such online postings.

The complaint asks for an injunction forbidding PennyMac from placing more than two collection calls a week to those who allegedly owe it money. It also asks for a declaration that the company has violated the Massachusetts law and that it has been the company’s “practice and history” to do so by placing an excessive number of debt-collection calls.

In addition, it asks for actual and statutory damages, treble damages, attorney fees and expenses, and “such other relief this Court deems just and appropritate.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

PennyMac Loan Services Excessive Debt Collection Calls Massachusetts Complaint

March 13, 2020

Debt collectors must obey certain laws and requirements when they attempt to collect debts from consumers. The complaint for this class action alleges that PennyMac Loan Services, LLC does not obey these laws and requirements in its attempts to collect from consumers who are late on their mortgage payments. It brings suit not under federal debt collection laws but under Massachusetts state consumer protection laws.

PennyMac Loan Services Excessive Debt Collection Calls Massachusetts Complaint

Case Event History

PennyMac Loan Services Excessive Debt Collection Calls Massachusetts Complaint

March 13, 2020

Debt collectors must obey certain laws and requirements when they attempt to collect debts from consumers. The complaint for this class action alleges that PennyMac Loan Services, LLC does not obey these laws and requirements in its attempts to collect from consumers who are late on their mortgage payments. It brings suit not under federal debt collection laws but under Massachusetts state consumer protection laws.

PennyMac Loan Services Excessive Debt Collection Calls Massachusetts Complaint
Tags: Mortgage-Related Unfair Practices, Unlawful Debt Collection