PennyMac Mortgage Payment Processing Fees Florida Class Action

Most mortgage holders pay their mortgages once a month. Sometimes, they prefer to pay online or by telephone, to avoid the uncertainties of mail delivery. The complaint for this class action alleges that PennyMac Loan Services, LLC charges its mortgage holders an improper processing fee when they pay by either of these methods, something it claims violates the Florida Consumer Collection Practices Act (FCCPA).

The plaintiff in this case, Gary Cooper, owns a home in Miami, Florida that he bought with a mortgage that is serviced by PennyMac. Cooper made a payment to PennyMac over the telephone in November 2018. For this PennyMac charged him a $15 fee.

According to the complaint, PennyMac regularly charges processing fees for payments made over the phone or online, “although neither the mortgage nor Florida Law expressly authorizes those fees.”

The fees might be permitted if they were the real costs of processing the payment and PennyMac passed the full amount on to the processor. However, this is apparently not the case.

The complaint alleges, “Where, like here, neither the contract creating the debt or applicable law expressly authorizes the charging of processing fees, such as those charged by PennyMac, 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.”

The complaint claims that it is obvious that PennyMac does not pass the entire fee through: “PennyMac fails to mention any third-party payment processor in any documentation available to [Cooper]. It is well known in the payment processing industry (but not by the general public) that third-party processors charge a small fraction of the amounts PennyMac charges as ‘processing fees.’”

Three subclasses together form the Florida Class:

The FCCPA Subclass is all individuals in Florida who, during the applicable limitations period, paid a processing fee to PennyMac for making a payment over the phone on a residential mortgage owned or serviced by PennyMac.

The Breach of Contract Subclass is all individuals in Florida who, during the applicable limitations period, paid a processing fee to PennyMac for making a payment over the phone on a residential mortgage owned or serviced by PennyMac.

The Unjust Enrichment Subclass is all individuals in Florida who, during the applicable limitations period, paid a processing fee to PennyMac for making a payment over the phone on a residential mortgage owned or serviced by PennyMac.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

PennyMac Mortgage Payment Processing Fees Florida Complaint

April 10, 2020

Most mortgage holders pay their mortgages once a month. Sometimes, they prefer to pay online or by telephone, to avoid the uncertainties of mail delivery. The complaint for this class action alleges that PennyMac Loan Services, LLC charges its mortgage holders an improper processing fee when they pay by either of these methods, something it claims violates the Florida Consumer Collection Practices Act (FCCPA).

PennyMac Mortgage Payment Processing Fees Florida Complaint

Case Event History

PennyMac Mortgage Payment Processing Fees Florida Complaint

April 10, 2020

Most mortgage holders pay their mortgages once a month. Sometimes, they prefer to pay online or by telephone, to avoid the uncertainties of mail delivery. The complaint for this class action alleges that PennyMac Loan Services, LLC charges its mortgage holders an improper processing fee when they pay by either of these methods, something it claims violates the Florida Consumer Collection Practices Act (FCCPA).

PennyMac Mortgage Payment Processing Fees Florida Complaint
Tags: Additional charges in breach of contract, Excessive Fees, Mortgage-Related Unfair Practices, Servicing Your Mortgage, Unlawful Fees