Consumers Claim U.S. Bank Provided Non-Operational P.O. Box as Address for Notice of Error Disputes

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A class action lawsuit alleges U.S. Bank, National Association violated the Real Estate Settlement Procedures Act (RESPA) by providing a non-operational P.O. box to which consumers were directed to send qualified written requests to address mortgage-loan related errors.

The lawsuit explains that RESPA permits mortgage loan borrowers to submit a qualified written request—called a Notice of Error (NOE)—to correct potential errors with regard to federally related mortgage loans. Loan servicers, the case says, are required under RESPA to provide a written response acknowledging receipt of a consumer-submitted NOE within five days. Moreover, RESPA stipulates, according to the suit, that servicers, “not later than 30 days” after the receipt of a NOE, must make appropriate corrections to a borrower’s account and provide written notification of such. In the event of an investigation into any possible errors, mortgage servicers, the case goes on, must provide a written statement outlining the reason for which “the servicer believes the account of the borrower is correct.”

The plaintiffs, who hail respectively from Ohio and Florida, claim U.S. Bank, since at least January 31, 2019, mandated that borrowers send any NOEs and information requests to a designated P.O. box located in Eagan, Minnesota. This designated P.O. box, however, was closed, the lawsuit claims, due to a past-due rental fee, and had no forwarding address on file.

“In short,” the complaint states, “the Designated Address is a Post Office Box that is no longer operational and contains no forwarding address on file.”