Roundpoint Mortgage Unlawful Fees and Harassment West Virginia Class Action

What fees is a mortgage servicer allowed to charge in West Virginia? The complaint for this class action claims that Roundpoint Mortgage Servicing Corporation charges customers unlawful fees, such as for property inspections, late charges, “ORCC” fees, and other miscellaneous fees. Not only are they forbidden under West Virginia law; the complaint claims that even “the threat to collect such fees” is also forbidden.

The class for this action is all consumers with West Virginia addresses who, within the applicable statute of limitations between September 2, 2021 and the date of class certification in this case, had loans serviced by Roundpoint and who were charged property inspection fees, late charges, “ORCC” fees, or other miscellaneous fees.

The servicing of plaintiff Patricia Edge’s mortgage was assigned to Roundpoint sometime around August 2014. She claims that Roundpoint has assessed all the fees named above in connection with her mortgage.

The West Virginia Code forbids “[a]ny representation that an existing obligation of the consumer may be increased by the addition of attorney’s fees, investigation fees, service fees or any other fees or charges when in fact such fees or charges may not legally be added to the existing obligation.”

It also forbids “[t]he collection of or the attempt to collect any interest or other charge, fee or expense incidental to the principal obligation unless such interest or incidental fee, charge or expense is expressly authorized by the agreement creating the obligation and by statute.” The fees named above, the complaint alleges, “are not permitted by either Plaintiff’s mortgage agreement of by statute.”

The complaint makes another allegation: It claims that “[i]n addition to assessing these illegal fees, according to its own call records, Roundpoint has called [Edge] more than thirty times per week or engaged her in telephone conversations more than ten times per week, or at unusual times or at times known to be inconvenient, with intent to annoy, abuse, oppress or threaten her.”

The complaint cites claims under Illegal Debt Collection, including Illegal Threat to Add Fees, Assessment of Late Fees in Excess of $30.00, and False Representation of Amount of Claim. The complaint also alleges violations of the West Virginia Consumer Credit and Protection Act, with reference to debt collection provisions, including “attempting to collect a debt by coercion” and “causing Plaintiff’s phone to ring or engaging persons, including the Plaintiff, in telephone conversations repeatedly or continuously or at unusual times or at times known to be inconvenient, with the intent to annoy, abuse or oppress the Plaintiff…”

Article Type: Lawsuit
Topic: Loans
Tags: Charges Not Permitted by Law, Extra Charges, Unlawful Debt Collection, Unlawful Fees