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PHH Mortgage Charges Added to Payoff Amount Class Action

When a person gets a large bill, they often do not question the individual smaller charges on it. The complaint for this class action alleges that PHH Mortgage Corporation slips in improper extra charges on mortgage payoff documents, which may include a Lien Release Fee and/or a Bank Wire Fee. It brings suit under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).

The class for this action is all property title holders who either (a) were charged a Bank Wire Fee by PHH Mortgage Corp. in order to pay off their mortgage or (b) were charged a Bank Wire Fee and/or a Lien Release Fee by PHH Mortgage Corp. prior to the fee being incurred or otherwise existing.

At issue is a payoff document for the mortgage of a property in Coral Springs, Florida. An individual named Brian Williams bought the property in October 2006, executing a note and a mortgage. On May 1, 2013, Williams allegedly defaulted.

The plaintiff in this case, 4632 CWELT-2008, LLC, then bought the property. It received title in June 2014. (This entity’s nature is not entirely clear from the complaint.)

On April 9, 2014, Deutsche Bank National Trust Company filed a foreclosure lawsuit against both Plaintiff 4632 CWELT-2008 and Williams.

PHH is the mortgage servicer for the note and mortgage on the property. Plaintiff 4632 CWELT-2008 asked PHH for payoff figures, so that it could execute a payoff. This June Payoff document was attached to the complaint at the time of filing as Exhibit A.

The complaint alleges, “Within the June Payoff’s total fees, [PHH] knowingly, intentionally, and willfully included charges for ‘Lien Release Fee’ in the amount of $18.50 and ‘Bank Wire Fee’ of $25.00, even though no charges had accrued as of the time of the Payoff and [PHH] otherwise does not get charged a Bank Wire Fee.”

The complaint alleges, “Based on the number of satisfaction requests received by servicers of mortgages such as PHH Mortgage Corp., it is apparent that thousands of consumers have been billed these improper fees…”

It claims that “bank wire fees should have been waived or otherwise not charged” and that they were charged “before such charges actually occurred[.]” It alleges that PHH “knowingly, intentionally, and willfully inflated the June Payoff by including charges that were not properly due, including—but not limited to—a [Lien] Release Fee and Bank Wire Fee that were not authorized by contract or law or exceeded amounts authorized by contract or law.”

Article Type: Lawsuit
Topic: Accounting and Charges

Most Recent Case Event

PHH Mortgage Charges Added to Payoff Amount Complaint

August 25, 2021

When a person gets a large bill, they often do not question the individual smaller charges on it. The complaint for this class action alleges that PHH Mortgage Corporation slips in improper extra charges on mortgage payoff documents, which may include a Lien Release Fee and/or a Bank Wire Fee. It brings suit under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).

PHH Mortgage Charges Added to Payoff Amount Complaint

Case Event History

PHH Mortgage Charges Added to Payoff Amount Complaint

August 25, 2021

When a person gets a large bill, they often do not question the individual smaller charges on it. The complaint for this class action alleges that PHH Mortgage Corporation slips in improper extra charges on mortgage payoff documents, which may include a Lien Release Fee and/or a Bank Wire Fee. It brings suit under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).

PHH Mortgage Charges Added to Payoff Amount Complaint
Tags: Mortgage-Related Unfair Practices, Unfair Business Practices, Unfair Charges