FDCPA Suit Filed Against Three Debt Collectors Over 'Estimated' Fees

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Rushmore Loan Management Services LLC, James E. Albertelli, P.A. and Carlsbad Funding Mortgage Trust are the defendants in a proposed class action alleging violations of the Fair Debt Collection Practices Act (FDCPA). Filed in Florida district court, the lawsuit claims the defendants charged the plaintiff more than $3,000 in “estimated” mortgage fees and costs, which the plaintiff says were charged in violation of the FDCPA. These estimated fees, the lawsuit contends, conceal the true amount of debt owed by the plaintiff (and proposed class members).

“Carlsbad, Rushmore and Albertelli Law know that the ‘estimated’ charges are illegal amounts that cannot be collected in a borrower’s loan reinstatement because each maintains records of the actual costs and fees associated with each borrower’s loan,” the complaint alleges.