LoanCare Incorrect Mortgage Late Fee Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

LoanCare, LLC, a subservicer of mortgage loans, is spending nearly a million dollars to settle a class action about its late fees on mortgages governed by an FHA promissory note that limited late fees. The complaint alleged it incorrectly calculated the fees, basing them on PITI (principal, interest, taxes, and insurance) rather than P&I (principal and interest) alone.

Docket Number:

190202806

Company: LoanCare LLC

Filing Deadline: January 1, 2100

Objection Deadline: October 6, 2020

Exclusion Deadline: October 6, 2020

Final Approval Hearing: October 27, 2020

Proof of Purchase:

It is not necessary to submit a claim form. Presumably company records will be used to identify class members.

Eligibility:

You may be eligible if you are an individual who

- had or have a mortgage loan subserviced by LoanCare,
- governed by an FHA promissory note limiting late fees to a percentage of the principal and interest (P&I),
- from whom LoanCare assessed or collected late fees based instead on PITI.

Typical Settlement Amount:

Overcharges will be returned, plus 2% annual interest from May 1, 2016. If your mortgage is currently subserviced by LoanCare, LoanCare will credit your account for the amount. If your mortgage is no longer subserviced by LoanCare, you will receive a check for the amount of the overcharges, plus 2% interest, from May 1, 2016.

Total Settlement Amount: $971,526.42 for refunds

Class Representative Proposed Incentive Fee:

$2,500

Law Firm:
Langer Grogan & Diver PC

Case Name: Gillespie v. LoanCare, LLC

Settlement Website: LoanCare Incorrect Mortgage Late Fee Settlement Website

Claims Administrator:
American Legal Claim Services

Claims Administrator Contact Information:

Gillespie v. LoanCare LLC Exclusions
c/o American Legal Claim Services
PO Box 23489
Jacksonville, FL 32241-3489

Tags: Excessive Late Fees, Mortgage-Related Unfair Practices