Lawsuit Investigation: Are Borrowers Being Charged Illegal Convenience Fees?
Last Updated on September 23, 2024
At A Glance
- This Alert Affects:
- People who were charged a flat fee to make a payment on a loan, debt, mortgage or credit card.
- What’s Going On?
- Attorneys working with ClassAction.org are investigating whether certain creditors are charging borrowers convenience fees – such as pay-by-phone fees and online service charges – to make payments on their debts. These fees may be illegal in some states, and it’s possible that class action lawsuits could be filed to help consumers get their money back and put an end to any illegal practices.
- Which Creditors Are Being Investigated?
- IC System, Inc.; JP Morgan Chase; Caine & Weiner Company, Inc.; Mariner Finance, LLC; Statebridge Company; Nationstar Mortgage (doing business as Mr. Cooper); LoanCare LLC; and Fifth Third Bank
- What States Are Being Looked Into?
- Attorneys are particularly interested in speaking to people who paid the fees in North Carolina, Maryland, Michigan, Florida, California and South Carolina.
- What You Can Do
- If you were charged a convenience fee by one of the above creditors for a transaction involving a loan, debt, mortgage or credit card, fill out the form on this page. One of the attorneys handling this investigation may then reach out to you directly.
Attorneys working with ClassAction.org would like to speak to consumers who were charged convenience fees by the following companies to make payments on loans, debts, mortgages or credit cards:
- IC System, Inc.
- JP Morgan Chase
- Caine & Weiner Company, Inc.
- Mariner Finance, LLC
- Statebridge Company
- Nationstar Mortgage (doing business as Mr. Cooper)
- Fifth Third Bank
They’re investigating whether these companies are charging illegal convenience fees in certain states and whether class action lawsuits could be filed. Specifically, the attorneys are looking to speak with people who were charged these fees in North Carolina, Maryland, Michigan, Florida, California and South Carolina.
If you live in one of those states and were charged a convenience fee – such as a pay-by-phone fee or online service charge – by one of the creditors mentioned above, you may be able to get your money back. Fill out the form on this page to learn more.
How Could a Class Action Lawsuit Help?
A class action lawsuit could help consumers get back the money they paid in improper fees to their bank or creditor. A successful case could also put an end to any illegal practices.
Further, some states may allow for the collection of statutory damages – which means that, in a successful case, the consumer may be entitled to an additional award under the law.
Lawsuits Allege Certain Fees Are Illegal
A few lawsuits have already been filed against mortgage servicers alleging that the companies levied exorbitant surcharges on customers who paid their mortgages over the phone or online. The suits also allege that the companies
- Should be compensated from interest on the loans – and not from what are sometimes called “pay-to-pay” fees
- Charge fees not expressly provided for in their contracts with borrowers
- Violate state law by marking up the actual cost to process the mortgage payments and pocketing the difference
The lawsuits claim that it costs around $0.50 to process a mortgage payment; however, some of these companies are alleged to have charged between $10 and $19 for these convenience fees.
According to the Consumer Financial Protection Bureau, pay-to-pay or convenience fees are only legal if the borrower agreed to pay them when they first took out the debt or a law specifically allows for the fee.
What You Can Do
Attorneys working with ClassAction.org suspect additional lawsuits can be filed, not just against mortgage servicers, but against banks and other creditors who may be charging borrowers unlawful convenience fees.
First, they need to hear from people who paid these fees. To learn more about this investigation and to find out if you could have been charged an illegal fee, fill out the form on this page. One of the attorneys working with ClassAction.org may then reach out to you directly. It doesn’t cost anything to contact us or to speak to one of the attorneys we work with.
Before commenting, please review our comment policy.