Ocwen, Experian, Trans Union Facing Class Action Over Alleged Forced-Placed Insurance

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A proposed class action lawsuit has been filed in Florida district court against Ocwen Loan Servicing, LLC, Experian Information Solutions, and Trans Union over alleged Fair Credit Reporting Act (FCRA) and Real Estate Settlement Procedures Act (RESPA) abuses. 

The plaintiff, a Palm Beach County, Florida resident, claims that in May 2017, after years of making monthly mortgage payments for her condo without issue, Ocwen “began refusing and returning payments” over her ostensible failure to have proper insurance on the property. In September 2017, the suit says, Ocwen allegedly began force-placing its own insurance on the plaintiff’s property without her consent.

According to the case, the plaintiff attempted to get in touch with Ocwen on numerous occasions but received “no specific answer as to why the current insurance from the condominium association was insufficient,” nor an answer concerning why her mortgage payments were no longer accepted. Even with attorney involvement, the plaintiff says, Ocwen remained silent. 

In January 2018, per the suit, the plaintiff was mailed a notice of delinquency due to non-payment on her mortgage. The case points out that Ocwen supposedly continued returning the plaintiff’s mortgage payments until February 2018.

Force-placed insurance claims aside, the lawsuit says that Ocwen, from October 2016 through August 2017, had been reporting the plaintiff’s mortgage payments to Experian and Trans Union as delinquent. Though the plaintiff mailed a dispute letter to both of the defendants, neither company sent the woman a response, the case claims. In fact, after receiving the plaintiff’s first dispute, neither Trans Union nor Experian even notified Ocwen that the woman was disputing her supposedly delinquent account, the lawsuit alleges.

“As of the date of this complaint, defendants Trans Union and Experian have continued to improperly report the Ocwen account as delinquent,” the lawsuit claims.

Rounding out the suit is the plaintiff’s claim that Ocwen unlawfully threatened her with foreclosure after she received a notice stating that such had been initiated. As of the date of the filing of the lawsuit, the complaint says, no such action has been taken by Ocwen.